Model Risk and Model Choice in the Case of Barrier Options

Model Risk and Model Choice in the Case of Barrier Options and Bonus Certificates

Journal of Banking & Finance ◽

10.1016/j.jbankfin.2021.106307 ◽

2021 ◽

pp. 106307

Author(s):

Rainer Baulea ◽

David Shkela

Keyword(s):

Barrier Options ◽

Model Choice ◽

Model Risk

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The Effect of Model Risk on the Valuation of Barrier Options

The Journal of Risk Finance ◽

10.1108/eb022961 ◽

2003 ◽

Vol 4 (2) ◽

pp. 47-55 ◽

Cited By ~ 25

Author(s):

ALI HIRSA ◽

GEORGES COURTADON ◽

DILIP B. MADAN

Keyword(s):

Barrier Options ◽

Model Risk

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Static hedging and model risk for barrier options

Journal of Futures Markets ◽

10.1002/fut.20199 ◽

2006 ◽

Vol 26 (5) ◽

pp. 449-463 ◽

Cited By ~ 34

Author(s):

Morten Nalholm ◽

Rolf Poulsen

Keyword(s):

Barrier Options ◽

Model Risk ◽

Static Hedging

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Revisit the CD Paradox in Entry Model Choice: Toward the Perspective of Strategic Fit

American Journal of Management ◽

10.33423/ajm.v18i3.77 ◽

2018 ◽

Vol 18 (3) ◽

pp. 86-103

Keyword(s):

Joint Venture ◽

Cultural Distance ◽

Model Choice ◽

Outward Fdi ◽

Strategic Fit ◽

Market Expansion ◽

Technological Competence ◽

Entry Model ◽

Wholly Owned Subsidiary ◽

Strategic Motives

The effect of cultural distance (CD) on the entry mode choice (EMC) has been intensively studied but the empirical results are mixed. This study adopts the strategic fit perspective to examine how firms’ strategic motives and technological ownerships may influence the EMC in face of different cultural distances. Analyzing Taiwanese outward FDI cases from 2004 to 2007, this study found that firms entering the culture-distant countries would choose the wholly-owned subsidiary (WOS) mode when emphasizing more about the protection of technological competence than market expansion, or else would choose the joint-venture (JV) mode when the market expansion is prioritized.

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