Gadjah Mada International Journal of Business
Vol 18, No 2 (2016): May-August

Using Real Options for the Evaluation of Venture Projects

Alexander Baranov (Faculty of Economics, Novosibirsk National Research State University
Institute of Economics and Industrial Engineering, Siberian Branch of Russian Academy of Sciences, Novosibirsk, Russia)

Elena Muzyko (Faculty of Business, Novosibirsk State Technical University, Novosibirsk, Russia)



Article Info

Publish Date
11 Aug 2016

Abstract

This paper considers the peculiarities of the application of the real options method for assessing the economic efficiency of venture investments in innovative projects from the venture fund’s position. The results of the practical use of the author’s approach for the evaluation of venture investments with real options are analyzed. The paper shows the applicability of the real options concept to the valuation of the effectiveness of venture capital investments. The use of the real options method raises the accuracy of the estimation and enhances the instruments of the venture fund in evaluating the economic efficiency of innovative projects.

Copyrights © 2016






Journal Info

Abbrev

GAMAIJB

Publisher

Subject

Economics, Econometrics & Finance

Description

Gadjah Mada International Journal of Business (GamaIJB) is a peer-reviewed journal published three times a year (January-April, May-August, and September-December) by Master of Management Program, Faculty of Economics and Business, Universitas Gadjah Mada. GamaIJB is intended to be the journal for ...