The Research On Real Option Method Of Culture Enterprise Value Assessment

With the sustained growth of China s economy, the demand and consumption of culture products and service by Chinese is in an unprecedented exuberant period. In order to meet the people’s growing demand and consumption of culture products and service and to promote the growth of economy, the government not only attaches great importance to the reform of culture institution and the development of culture industry, but also has issued a series of vigorous policies to promote the development of culture industry. In the process of revitalizing culture industry, culture institutions changing into enterprises and culture enterprises mergers and acquisitions need an objective, reasonable and fair enterprise value assessment. There exist various deficiencies when the three traditional methods of enterprise value assessment are used, because culture enterprises assets and business decision-makings have their own characteristics. So it is necessary to find a more reasonable idea of culture enterprise value assessment.Based on the research of scholars at home and abroad,this paper analyzes the characteristics of assessment for culture enterprise value,and analyzes the deficiency of traditional methods for enterprise value assessment when they are used to evaluate the value of culture enterprises. Through the analysis of real option theory, the paper puts forward the idea using the real option method to evaluate the value of culture enterprises. Then the paper describes the detailed steps of the use of the new idea and studies the feasibility of using this new method for culture enterprise value assessment. In the last, through using the real option method to evaluate the enterprise value of an unlisted culture enterprise,the paper demonstrates that the new idea put forward by this paper can play a constructive role for the value assessment of culture enterprises.This paper proposes that we can use the real option method to evaluate the value of culture enterprises. In this way, a more reasonable and more complete result of evaluation for the culture enterprise value can be get by making full use of the strengths of real option method.