Moel, Alberto and Tufano, Peter (2002) When Are Real Options Exercised? An Empirical Study of Mine Closings. The Review of Financial Studies, 15 (1). pp. 35-64.
In this article, we study a well-known real option: the opening and closing of mines. Using a new database that tracks the annual opening and closing decisions of 285 developed North American gold mines in the period 1988-1997, we find that the real options model is a useful descriptor of mines' opening and shutting decisions. In addition, we find that the decision whether to shut a mine is related to firm-specific managerial factors not normally considered within a strict real options model.
|Keywords:||mining; real options; decision making|
|Date Deposited:||19 Oct 2011 14:02|
|Last Modified:||14 Aug 2015 13:04|
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