Decision making for integrating a securities firm with a financial holding company: comparison between the NPV method and the binomial option approach

Lin, Tyrone T.; Liu, Chien-Ku; Ko, Chuan-Chuan; Lee, Hsiu-Chin

doi:10.1080/02522667.2006.10699693

Cited by 3 publications

(3 citation statements)

References 3 publications

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“…In this essay, my opinion is how to weigh the pros and cons, and maximizing the interests of the company and shareholders is the ultimate goal of an investment. But in theory, investment decisions in today's financial markets are only for maximizing the company's value [4][5][6]. Rationally speaking, investment decisions must follow the results of the economic model, which means that investment decisions do not need to consider the personal wishes of consumers, but only need to consider how to maximize the value of the company.…”

Section: Introductionmentioning

confidence: 99%

Investment Decision Analysis Based on NPV, IRR, and the Fisher Separation Theorem

Tan¹

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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In today's society, investment decision-making has become one of the main decisions of every large-scale company. The management and shareholders of the company conduct reasonable analysis and vote for high-quality investment plans. The paper mainly shows the impact of economic models on project decision-making, and mainly summarizes the relationship between the economic model NPV and IRR and its application loopholes in actual situations. The final results of the paper show that the economic models NPV and IRR have their own advantages and disadvantages, and they need to be used reasonably according to the situation. Second, investors do not have to follow economic models to make decisions. When faced with investment decisions, they should adapt to the current situation.

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Section: Introductionmentioning

confidence: 99%

Investment Decision Analysis Based on NPV, IRR, and the Fisher Separation Theorem

Tan¹

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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“…In other words, real options method is more suitable than cash flow discounted method in the valuation of the real value of the target company. Lin et al [9] compared the NPV and real options method Downloaded by [UQ Library] at 21:59 20 November 2014 by studying the cases where full-service securities firms join financial holding companies. They found that the NPV suggests that the company concerned should join a financial holding company immediately whereas the real option method says the otherwise.…”

Section: Introductionmentioning

confidence: 99%

Application of real options model in multiple-stage acquisition strategies

Lin

Lee

Chang

2009

Journal of Information and Optimization Sciences

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This paper aims to examine the criteria for strategy formulation in the consideration of potential acquisition values in a multiple-stage acquisition process. This paper uses a case study to attempt to construct the valuation of a reasonable acquisition value based on the real options method. The implied potential value measured in different stages of horizontal acquisitions is referred to as the basis to decide the best strategies and the choice of exits, and to determine the optimal acquisition price in negotiations. Comparing with the traditional valuation methods, it demonstrates more flexibility in the negotiation mechanism in the multiple-stage acquisition and that can protect the optimal price for both parties.

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“…In present global economy, integration and strategic alliance are omnipresent. Lin et al (2006) examines that the integration relationship between securities firms and financial holding companies. The literature examining the most suitable models of such bancassurance alliance models is limited.…”

Section: Introductionmentioning

confidence: 99%

Financial holding company in Bancassurance alliance models is preferable? Applying AHP and GRA

Wu¹,

Lin²,

Lin³

2009

Journal of Statistics and Management Systems

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The aim of this paper applies Analytical Hierarchy Process (AHP) to calculate the weights and applies Grey Relational Analysis (GRA) to rank the alternatives for identification the preferable bancassurance alliance structure from the executive management perspectives. Next, compare AHP with GRA concerning the ranking of alternatives. Finally, the result proves the financial holding company in bancassurance alliance models is preferable.

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Decision making for integrating a securities firm with a financial holding company: comparison between the NPV method and the binomial option approach

Cited by 3 publications

References 3 publications

Investment Decision Analysis Based on NPV, IRR, and the Fisher Separation Theorem

Investment Decision Analysis Based on NPV, IRR, and the Fisher Separation Theorem

Application of real options model in multiple-stage acquisition strategies

Financial holding company in Bancassurance alliance models is preferable? Applying AHP and GRA

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