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http://dx.doi.org/10.7583/JKGS.2013.13.3.69

A Modified Real Options Valuation Model for Early Stage Start-Ups in the Game Industry  

Yoo, Changsok (Dept. of Culture & Tourism Content, Kyung Hee University)
Poe, Baek (Dept. of Culture & Tourism Content, Kyung Hee University)
Publication Information
Journal of Korea Game Society / v.13, no.3, 2013 , pp. 69-76 More about this Journal
Abstract
The financial value of early stage start-up has a tendency to depend more on the non-financial factors, but these are not efficiently reflected in the traditional valuation models. Therefore, most of valuation practices for early stage start-ups heavily relied on the guts of experts. To remedy this, this study suggests a model to directly reflect the non-financial factors especially for the real options approach. Actual process of valuation and the adjustment way were developed considering the characteristics of early stage start-ups in the game industry.
Keywords
Valuation; Real Options; Value Adjustment; non-financial factors; early stage start-ups;
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Times Cited By KSCI : 2  (Citation Analysis)
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