Mergers And Acquisitions Decision-Making Based On Real Option Theory

As traditional investment decision-making methods have many shortages under uncertainty, many scholars have launched the research on investment decision-making under uncertainty. Real option theory is the representative result of the research. It is known that there are many uncertainties in M&A (mergers and acquisitions). How to make the decision under uncertainty is the matter that enterprises concern about. Real option method, which can help investors to make the decision under uncertainty, has been applied to the research in M&A decision-making abroad and has become an issue of the foreland in M&A decision-making theory study. On the base of the previous research, combined the characters of M&A, the thesis studies the M&A decision-making based on real option deeply and develops a M&A decision-making model under uncertainty.The thesis reviews the theories of M&A and real option, analyzes the option characters of M&A, uses real option method, combines the actual decision-making needs, and develops a framework of M&A decision-making based on real option theory. Based on the framework, the thesis develops a...