25 Years of Real Option Empirical Research in Management

Edith Ipsmiller,Desislava Dikova,Keith D Brouthers

doi:10.2139/ssrn.2908876

Edith Ipsmiller, Desislava Dikova + Show 1 more

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https://doi.org/10.2139/ssrn.2908876

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Abstract

For several decades, management scholars have extolled the virtues of using real option logic when making decisions under uncertainty. Real option logic suggests that in such situations, firms might be better off deferring or staging investments, minimizing potential financial losses, while at the same time securing an option to grow (or abandon) the investment when uncertainty abates. Our analysis of the empirical research published in leading management journals over the past 25 years suggests that while some progress has been made, much more work needs to be done. We still do not have the answers to critical questions such as: Which entrepreneurial/managerial traits impact the identification of real options? Which behavioral biases impact the exploitation of real options? Do multiple types of uncertainties interact with each other and influence real option decisions? Does the lack of a specific pre-investment buy-out arrangement impact a firm’s ability to capture the value of growth/abandonment options? How does the choice of a current option structure influence the value of past option investments? Addressing these and other issues identified in our study can help improve our understanding of the usefulness of real option logic in management.

Highlights

The purpose of this paper is to consider how formative and summative classroom practices varies according to the way terminal, summative assessment is viewed and undertaken by high school teachers in England and Canada
This paper compares the way English is assessed in England and Canada and looks to the ways in which the kind of assessment undertaken affects the practices of English teachers both in the teaching of summative and formative assessment
They had a system very like the one in England where it combined internal school assessments with external moderation. They even had Random Sampling of Assessment in Authority Subjects to double check that the assessment system was robust. This too, stopped recently due, in part, to the Masters Report in 2009, which was looking at the National Assessment Plan Literacy and Numeracy (NAPLAN) and Queensland’s poor results in that test

Summary

Introduction

The purpose of this paper is to consider how formative and summative classroom practices varies according to the way terminal, summative assessment is viewed and undertaken by high school teachers in England and Canada. England abandoned 100% coursework in 1992, the last pupils to take a 100% summative, course-based exam was in 1994. It maintained some form of coursework until 2015 when any form -based exam was eliminated and since 2017, students have been assessed by terminal examination alone. They had a system very like the one in England where it combined internal school assessments with external moderation. They even had Random Sampling of Assessment in Authority Subjects to double check that the assessment system was robust. Underpinning the divide was the ill-conceived notion that standardised testing led to more reliable judgement, especially where marking was regulated (e.g., by machine marking), and relied less on the human brain for decision-making [1] (p. 68)

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