Sequential International Joint-Ventures and the Option to Choose

The purpose of this study is to formalize the optimal choice of market entry strategy for an individual multinational enterprise (MNE) from a dynamic perspective. It is argued that incorporating a suitable treatment of irreversibility, uncertainty and flexibility related to a MNEs investment decision gives further insights to the expansion, dissolvement, and optimal timing of international joint ventures (IJVs). The evolutionary process of the value of the foreign direct investment can be interpreted as a compound complex chooser option. The results suggest that uncertainty, size of equity share and future investment/divestment opportunities play an important role when it comes to transit from export to the first phase of the foreign direct investment commitment. The paper underscores the importance of modeling the dynamics of market entry and helps to refine the application of real options in the alliance context by providing a closed-form solution in continuous time to valueForeign direct investment, multinational enterprise, sequential investments, entry mode, international joint venture, real options

The Choice between Greenfield Investment and Cross-border Acquisition: A Real Option Approach

The purpose of this study is to formalize the choice of market entry strategy for an individual multinational enterprise (MNE) from a dynamic perspective. It is argued that incorporating a suitable treatment of irreversibility, uncertainty and flexibility related to a MNEs investment decision gives further insights to the choice of cross-border acquisitions to greenfield investment as the preferred entry mode. In most cases, the initial entry strategy serves as a platform allowing the firm to make subsequent investments to exploit host-country advantages and capabilities.We allowfor this by taking a two-step expansion strategy explicitly into account. The evolutionary process of the value of the foreign direct investment includes two stochastic elements as well as the timing that triggers the transition from export to foreign direct investment. The results suggest that uncertainty and future investment opportunities play an important role when it comes to transit from export to the first phase of the foreign direct investment commitment as well as have an impact on the choice of entry strategy.Foreign direct investment; Multinational enterprise; Sequential investments; Entry mode; Greenfield investment; Cross-border acquisition

Export production under exchange rate uncertainty

Given that a multinational enterprise can react flexibly upon exchange rate movements, international trade flows may be interpreted as an option. An enterprise will opt to export if the profits obtained from exporting under given exchange rate developments are greater than if foreign subsidiary sales were opted. Naturally, given negative exchange rate scenario situations, an enterprise will choose not to export. By virtue of a favorable exchange rate situation it may be more advantageous to implement the flexibility given by the inherent option exercise privilege. Interestingly, even taking account of entrepreneurial risk aversion aspects of enterprises, it is demonstrated that situations characterized by enhanced exchange rate volatility may still lead to greater export trade volumes. --Export,Exchange Rate Volatility,Risk Aversion,Real Option

On the Investment-Uncertainty Relationship: A Game Theoretic Real Option Approach

This paper examines the effect of uncertainty on investment timing in a game theoretical real option model. We extend the settings of Gryglewicz et al. (2008), Wong (2007), and Sarkar (2000) by a more general assumption, i.e. the investment is also influenced by the actions of a second player. The results show that a U-shaped investment-uncertainty relationship generally sustains. However, timing of an investment occurs inefficiently late. Moreover, we show that the influence of uncertainty on the associated first-mover advantage becomes ambiguous, too

Bedingte Kaufpreisanpassungen, Informationsasymmetrien und Shareholder Value: Eine empirische Analyse deutscher Unternehmensübernahmen

Gerade in Zeiten der globalen Finanzkrise eignen sich Earn-out-Vereinbarungen in besonderem Maße, um den gesteigerten Informationsasymmetrien im Rahmen einer Unternehmensübernahme begegnen zu können. Doch wie stark profitieren die Käufer vom Einsatz eines solchen Instrumentes und was bestimmt die Intensität und Richtung? Im Rahmen einer branchenübergreifenden Untersuchung wird der Einfluss von Earn-out-Regelungen auf den Unternehmenswert deutscher Käufer untersucht. Die Ergebnisse zeigen, dass der deutsche Kapitalmarkt den Einsatz von Earn-outs grundsätzlich positiv bewertet. Bei näherer Betrachtung zeigt sich, dass neben dem Abbau von Informationsasymmetrien, auch ein höheres Earn-out-Ratio, eine nied-rigere Earn-out-Laufzeit und ein geringerer Verschuldungsgrad einen positiven Effekt haben. Der Einfluss des Earn-out-Ratios wird allerdings durch eine längere Laufzeit be-grenzt und ins Gegenteil verkehrt.Unternehmensübernahme, Earn-out, Ereignisstudie, Shareholder Value, Informationsasymmetrien

The Impact of Managerial Flexibility on Negotiation Strategy and Bargaining Power

Using a dynamic real options approach we show that in a sequential bargaining framework managerial flexibility is strengthening the first-mover advantage by undermining the bargaining power of the second mover. Furthermore we compare the results of the sequential framework with the results of cooperative bargaining.real option, game theory, sale, negotiation, flexibility, ultimatum game

Options of internationalisation: motives for foreign direct invetsment in a new light

The application of theorectical option pricing evaluation procedures for the analysis of real investment decisions indicates a new trend in the classical theory of investment and finance. In this regard, the formative term of the real option approach subsumes three basic attributes of investment decisions: irreversibility, operational flexibility and uncertainty, and brings them together in an economically quantifiable context. The reseach focus aims at applying the methodology to the existing theory of foreign direct investment (FDI). This also comprises the attempt to reason the heterogenity concerning the choice of market cultivation as well as market entry strategies and the therewith affiliated location decisions of multinational enterprises in an economically rational manner.internationalisation; foreign direct investment; real option approach

Economic theory in everyday life: Hedge funds

Up to date any kind of hedge fund was legally forbidden in Germany. Likewise, the public distribution of shares in foreign hedge funds was prohibited within the framework of the so called 'Auslandsinvestitionsgesetz' (AuslInvestmG). In March 2004, it was 'DWS Investment' (the investment company of Deutsche Bank) that was the first German firm which was approved by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) to distribute its products. Two major developments have promoted this change within the landscape of financial services and are therefore discussed in the following.Hedge funds; Germany

Template-free Articulated Neural Point Clouds for Reposable View Synthesis

Dynamic Neural Radiance Fields (NeRFs) achieve remarkable visual quality when synthesizing novel views of time-evolving 3D scenes. However, the common reliance on backward deformation fields makes reanimation of the captured object poses challenging. Moreover, the state of the art dynamic models are often limited by low visual fidelity, long reconstruction time or specificity to narrow application domains. In this paper, we present a novel method utilizing a point-based representation and Linear Blend Skinning (LBS) to jointly learn a Dynamic NeRF and an associated skeletal model from even sparse multi-view video. Our forward-warping approach achieves state-of-the-art visual fidelity when synthesizing novel views and poses while significantly reducing the necessary learning time when compared to existing work. We demonstrate the versatility of our representation on a variety of articulated objects from common datasets and obtain reposable 3D reconstructions without the need of object-specific skeletal templates. Code will be made available at https://github.com/lukasuz/Articulated-Point-NeRF