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題 名 | Asset Valuation of Banks in Mergers Using Real Option Method |
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作 者 | Kapil, Sheeba; Kapil, Kanwal; | 書刊名 | Academy of Taiwan Business Management Review |
卷 期 | 5:1 2009.04[民98.04] |
頁 次 | 頁49-55 |
分類號 | 562.3 |
關鍵詞 | |
語 文 | 英文(English) |
英文摘要 | The paper applies real options to value Indian bank mergers. The analysis shows that these acquisitions were underpaid. The option premium calculated was far greater than the actual takeover premium. This research aims at applying real option pricing theory to recent bank mergers in India to check if these were possibly overpaid. On average, we find that the option premium was far less than the actual takeover premium suggesting that, from an option-pricing point of view, those acquisitions were underpaid. Further analysis, assuming the option premium equaled the takeover premium, shows that either the implicitly assumed volatility was too low, the assumed time to maturity was very short and/or the assumed subsequent market performance was too optimistic. |
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