TY  - CHAP
AB  - This paper categorizes and critiques the empirical research strategies that have been employed to test real options theory. Existing research has sought to detect valuable options in firms’ strategic investments as well as to investigate the payoffs from these investments. Our review highlights some of the evidence that has accumulated in recent years for real options theory. We flag some of the most important challenges and tradeoffs associated with the use of different empirical research approaches for testing real options theory in strategic management. The paper concludes by offering a number of research priorities to advance the theory by probing its descriptive validity as well as by addressing its normative aspirations to bridge corporate finance and strategy.
VL  - 24
SN  - 978-0-7623-1427-0, 978-1-84950-494-2/0742-3322
DO  - 10.1016/S0742-3322(07)24005-7
UR  - https://doi.org/10.1016/S0742-3322(07)24005-7
AU  - Reuer Jeffrey J.
AU  - Tong Tony W.
ED  - Jeffrey J. Reuer
ED  - Tony W. Tong
PY  - 2007
Y1  - 2007/01/01
TI  - How Do Real Options Matter? Empirical Research on Strategic Investments and Firm Performance
T2  - Real Options Theory
T3  - Advances in Strategic Management
PB  - Emerald Group Publishing Limited
SP  - 145
EP  - 173
Y2  - 2024/05/04
ER  -