Title :
Study on the conversion option model of investment decision-making for real estate enterprises
Author :
Li-yong, Zeng ; Yazheng, Qiu
Author_Institution :
School of Economics and Management Changsha University of Science and Technology Changsha, China
Abstract :
Nowadays construction projects in many cities are progressing rapidly, which leads to ever-accelerating profound changes to the look of the cities. Under such circumstances a real estate enterprise can have the option to develop different types of real estate projects on a certain parcel of land. Taking account of this condition as well as the uncertainty of the commercial housing price, this paper constructs a conversion option model of investment decision-making, using real options theory; meanwhile suggests rules in making investment.
Keywords :
Cities and towns; Decision making; Economics; Educational institutions; Investments; Out of order; Uncertainty; conversion option; investment decision-making; real estate; uncertainty;
Conference_Titel :
E -Business and E -Government (ICEE), 2011 International Conference on
Conference_Location :
Shanghai, China
Print_ISBN :
978-1-4244-8691-5
DOI :
10.1109/ICEBEG.2011.5885303
