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Título
Exercising a firm’s growth options: A portfolio approach
Año del Documento
2021
Editorial
Elsevier
Descripción
Producción Científica
Documento Fuente
Journal of Business Research, 2021, vol. 132. p. 571-585
Résumé
This paper investigates a firm’s decision to exercise its growth options within the current scope of business. We contend that the point at which a firm chooses whether or not to exercise such options depends on several strategic characteristics associated to its portfolio of businesses (i.e. level of diversification, average volatility of its current business, relatedness among them, and rivalry in its core business). Using a sample of U.S. companies from 1998 to 2013, we find evidence that a firm’s level of diversification and the volatility of its current business deter immediate growth option exercise. In contrast, relatedness and rivalry in its core business trigger growth options exercise. Our portfolio perspective differs from the bulk of the literature on real options, which evaluates each growth option exercise in isolation, and contributes to furthering knowledge on the drivers underlying a diversified firm's strategic investments.
Palabras Clave
Opportunity exploitation
Explotación de oportunidades
Portfolio
Investment strategy
Investment strategies
Estrategias de inversión
ISSN
0148-2963
Revisión por pares
SI
Patrocinador
Junta de Castilla y León (grant VA260U14)
Gobierno de la Comunidad de Madrid - Fondo Social Europeo (grant EARLYFIN, S2015/HUM-3353)
Ministerio de Ciencia e Innovación (grants ECO2017-84864-P and ECO2017-85356-P)
Gobierno de la Comunidad de Madrid - Fondo Social Europeo (grant EARLYFIN, S2015/HUM-3353)
Ministerio de Ciencia e Innovación (grants ECO2017-84864-P and ECO2017-85356-P)
Propietario de los Derechos
© 2021 The Authors
Idioma
eng
Tipo de versión
info:eu-repo/semantics/publishedVersion
Derechos
openAccess
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