Options Approach to Risk Analysis in Transportation Planning

2000 ◽  
Vol 1706 (1) ◽  
pp. 54-63 ◽  
Author(s):  
Daniel Brand ◽  
Shomik Raj Mehndiratta ◽  
Thomas E. Parody
Keyword(s):  
Risk Analysis ◽  
Transportation Planning ◽  
Planning Process ◽  
Investment Decision ◽  
Relevant Information ◽  
Additional Information ◽  
Real Options Approach ◽  
Commitment Cost ◽  
Investment Decision Making ◽  
Planning Methods

The applicability of the real-options approach to risk management to the metropolitan transportation planning process is described. The options approach to risk analysis brings to investment decisions the insight that there is an inherent value in option-creating actions (by resolving uncertainty, enabling flexibility, or uncovering new and relevant information) and a cost associated with exercising options (irreversible commitments of resources and time). The options approach moves investment decision making from simply choosing whether to build a project to a regime that considers a range of possible decisions, with the potential value of each decision measured in terms of its option-creation value and irreversible commitment cost. This approach is specifically designed to maximize the value of investments having the characteristics of transportation projects that are subject to uncertainty and risk in their outcomes. Also described is the new options approach; examples that illustrate the value of different kinds of options are given. By recognizing the value of improved information—and actions to obtain it—the options approach can give real impetus to improved planning methods. Because the analysis tools provided by the options approach make it possible to value the additional information that improved planning can provide, recommendations are provided on how—and in what parts of the metropolitan transportation planning process—the new tools of risk analysis can most appropriately be applied.

Does Web Syndication Technology Facilitate Investor Decision Making?

2008 ◽  
Vol 5 (1) ◽  
pp. 143-159 ◽  
Author(s):  
Yu Cong ◽  
Hui Du ◽  
Jinjuan Feng
Keyword(s):  
Decision Making ◽  
Information Integration ◽  
Investment Decision ◽  
Relevant Information ◽  
Emerging Technology ◽  
Web Page ◽  
Multiple Sources ◽  
Nonprofessional Investors ◽  
Internet Users ◽  
Investment Decision Making

ABSTRACT: Web syndication is an emerging technology that “feeds” website information to subscribers. It allows Internet users to collect, organize, and view frequently updated information from multiple sources effortlessly. We investigated whether using web syndication technology helps nonprofessional investors acquire and integrate relevant information which has been updated frequently and is from multiple sources when the investors make decisions. We obtained evidence of this new technology's effects using an experiment where subjects visited either a syndicated web page or a nonsyndicated web page and assessed two fictional companies' critical financial ratios and investment perspectives. Our results indicate that individuals who use syndication technology are more effective in acquiring relevant information updated frequently and integrating information for investment decision making than individuals who do not use such technology. The results suggest that web syndication may be used as an information integration tool for nonprofessional investors in assisting their decision making.

scholarly journals Application of Risk Analysis in Business Investment Decision-Making

2013 ◽  
Vol 64 (4) ◽  
pp. 313-322 ◽  
Author(s):  
Martina Merková ◽  
Josef Drábek ◽  
Denis Jelačić
Keyword(s):  
Decision Making ◽  
Risk Analysis ◽  
Investment Decision ◽  
Business Investment ◽  
Investment Decision Making

scholarly journals The Effects of Irreversibility and Uncertainty on Business Investments: A New View of Investment

2014 ◽  
Vol 5 (3) ◽  
pp. 7-20
Author(s):  
Katarína Belanová
Keyword(s):  
Empirical Analysis ◽  
Investment Decision ◽  
Firm Level ◽  
Factors Affecting ◽  
Real Options Approach ◽  
Investment Decision Making ◽  
Level Data ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This article presents a survey of recent theoretical, as well as empirical, contributions concerning business investments, which help to explain the investment decision making of companies. These contributions emphasize the relevance of idiosyncratic factors affecting investment decisions such as the degree of irreversibility and uncertainty, interactions between these factors may generate an opportunity cost equivalent to the exercise of an option and so they add an important dimension to the neoclassical theory of investment (also called standard or orthodox theory of investment). This theory has not recognized the important qualitative and quantitative implications of this interaction, what can explain some of its failures. We investigate the irreversibility of investments and the impact this has on the nature of the relationship between investment and uncertainty in the way of empirical analysis. The empirical analysis uses firm – level data and is based on a survey of 53 automotive suppliers, which was carried out during the year 2011. We find supportive evidence for the fact that uncertainty is negatively associated with planned investments of the companies surveyed, which remains true also in the presence of irreversibility. At the end we demonstrate the core of the real options approach in a form of a practical example.

Education and Training of Transportation Engineers and Planners Vis-à-Vis Public Involvement

1996 ◽  
Vol 1552 (1) ◽  
pp. 171-176 ◽  
Author(s):  
C. Jotin Khisty
Keyword(s):  
Citizen Participation ◽  
Public Involvement ◽  
Planning Process ◽  
Communicative Action ◽  
Investment Decision ◽  
Education And Training ◽  
Investment Decision Making ◽  
The Face ◽  
Political Dimensions ◽  
And Training

Public involvement in transportation investment decision making is central to accomplishing the vision of the Intermodal Surface Transportation Efficiency Act of 1991. FHWA and FTA are striving to promote this objective in the face of several problems, some of which stem from the biased education and training of engineers and planners. The predominant emphasis of the majority of planners has been and continues to be on technical issues to the exclusion of communicative action and emancipatory interest, resulting in planners not being able to cope with the demands of participatory democracy. The basic concepts of communicative action that need to be incorporated in the education and training of engineers and planners to equip them to deal effectively with citizen participation are introduced. It is recommended that in the changed context in which transportation engineers and planners will have to operate, it is essential that they gain competency beyond just technical areas and be competent to cope with the social, economic, and political dimensions of planning by gaining an understanding of the rudiments of communicative action. A blend of all three rationalities and interests (technical, communicative, and emancipatory) will have to form part of the day-today vocabulary and knowledge base of future planners in view of the importance of public participation in the transportation planning process. An appropriate graduate course on this topic is outlined.

How Transportation Planners and Decision Makers Address Risk and Uncertainty

2000 ◽  
Vol 1706 (1) ◽  
pp. 46-53 ◽  
Author(s):  
Shomik Raj Mehndiratta ◽  
Daniel Brand ◽  
Thomas E. Parody
Keyword(s):  
Cross Section ◽  
Transportation Planning ◽  
Planning Process ◽  
Management Plan ◽  
Decision Makers ◽  
Risk And Uncertainty ◽  
The Public ◽  
Real Options Approach ◽  
Transportation Projects ◽  
Metropolitan Planning

A wide cross section of transportation planners was interviewed to understand how issues related to risk and uncertainty are presently addressed in the metropolitan transportation planning process. The results and insights from these interviews are reported. It was found that many of the current responses to risks in making decisions on transportation investments could usefully be explained and improved upon by the new options approach. The examples and the analyses of the interviews show that metropolitan planning organization planners and more senior transportation executives and decision makers are certainly aware of the risks they face in investing in major transportation projects. Furthermore, they already are capable of responding to those risks in ways that can be better appreciated and explained by the options approach. What is missing in metropolitan transportation planning, and in the public-sector investment community at large, is an appreciation that there are advantages to identifying and analyzing risks early in the planning process, and that investments involving risk can be systematically analyzed in a risk management plan that uses the real-options approach. This may result in (much) higher value investments to accomplish the stated investment goals, while avoiding serious mistakes in investing in projects that may fall far short of the investment goals.

scholarly journals PENGARUH CORPORATE GOVERNANCE TERHADAP TAX AVOIDANCE (Perusahaan Pertambangan yang terdaftar di BEI)

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Sri Mulyani, Anita Wijayanti, Endang Masitoh
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Investment Decision ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Mining Company ◽  
Additional Information ◽  
Investment Decision Making ◽  
Data Source

The purpose of this research is to know the influence of institutional ownership, independent commissioner, audit committee and audit quality to tax avoidance at mining company listed on BEI year 2014-2016. The population of this study is mining companies listed on the BEI 2014-2016 as many as 46 companies. Sampling used in this research purposive sampling method. Data source is secondary data obtained from company website and BEI website (www.idx.co.id). This study uses multiple regression analysis to analyze data with the help of SPSS 21 edition program. The results of this study indicate that the variables of institutional ownership, audit committee and audit quality have significant influence on tax avoidance, while independent commissioner variable has no significant effect on tax avoidance. The results of this study are expected to be an additional consideration of the management in conducting tax avoidance is correct and efficient without violating applicable tax laws, and can provide additional information for users of financial statements in investment decision making.  

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