Real Options-Based Analysis in Pharmaceutical Partnerships for Research and Development

2009 ◽  
pp. 217-230
Keyword(s):  
Research And Development ◽  
Real Options

Accounting Conservatism and Real Options

2007 ◽  
Vol 22 (3) ◽  
pp. 449-467 ◽  
Author(s):  
Michael J. Smith
Keyword(s):  
Research And Development ◽  
Real Options ◽  
Relative Size ◽  
Accounting Conservatism ◽  
Differential Treatment ◽  
Development Projects ◽  
Generally Accepted Accounting Principles ◽  
Accounting Principles ◽  
Fixed Assets ◽  
Ex Ante

I address the interaction between accounting conservatism and real options in both a staged investment and abandonment model. An accounting policy biased toward classifying a Good (Bad) project as Bad (Good) is conservative (aggressive). The accounting signal is optimally conservative when the ex ante unconditional expected terminal value is less than the second investment (staged investment) or value of the asset in its alternative use (abandonment). The relative size of the second investment is a proxy for the degree of sequentiality of the project. Because research and development projects typically require more sequential investment than fixed assets projects, the staged investment results are consistent with the differential treatment of these types of investment under U.S. Generally Accepted Accounting Principles.

Restructuring R&D: The case of Korea

2001 ◽  
Vol 20 (1) ◽  
pp. 63-68
Author(s):  
Youn-Suk Kim ◽  
Hyeng Keun Koo
Keyword(s):  
Small Business ◽  
Research And Development ◽  
Real Options ◽  
High Technology ◽  
Financial Difficulty ◽  
The Real ◽  
The Imf

In this paper we study the changing pattern of Korean Research and Development (R&D) after the IMF crisis. We contend that the focus has changed from government and chaebol-initiated R&D to small business and university-initiated R&D. This transition resulted from various reasons: (1) financial difficulty caused upon big chaebols by the IMF crisis, (2) the government's emphasis on nurturing high-technology venture businesses, (3) the government's initiative to start Brain Korea 21 (BK21) projects. We evaluate this transition from the real options view of R&D.

A real options game of alliance timing decisions in biopharmaceutical research and development

2017 ◽  
Vol 261 (3) ◽  
pp. 1189-1202 ◽  
Author(s):  
Azzurra Morreale ◽  
Serena Robba ◽  
Giovanna Lo Nigro ◽  
Paolo Roma
Keyword(s):  
Research And Development ◽  
Real Options ◽  
Timing Decisions

scholarly journals Research and Development Projects Upon Real Options View

2014 ◽  
Vol 25 (3) ◽  
Author(s):  
Dominik Metelski ◽  
Antonio Mihi-Ramirez ◽  
Jesus Arteaga-Ortiz
Keyword(s):  
Research And Development ◽  
Real Options ◽  
Development Projects
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