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http://dx.doi.org/10.7583/JKGS.2014.14.4.67

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

Yoo, Changsok (Dept. of Culture & Tourism Content, KyungHee University)
Jung, Jaeki (FG Investment)
Poe, Baek (Dept. of Culture & Tourism Content, KyungHee University)
Publication Information
Journal of Korea Game Society / v.14, no.4, 2014 , pp. 67-74 More about this Journal
Abstract
Real options valuation models are now proved as a effective valuation method both in Theoretically and empirically. However, to use real options model for early stage start-ups, additional non-financial information is crucial in the valuation process. Previous studies theoretically suggested the modified real options valuation model and process to use non-financial information in the valuation of early stage startups, but there is no empirical evidence on the suggested model. Therefore, this study investigated the effectiveness of the modified real options valuation model using a case study. The case study result showed that the modified real options valuation effectively reflect the non-financial information in early stage startups, and decrease the forecasting error in the valuation process.
Keywords
Valuation; Real Options; Value Adjustment; non-financial factors; early stage start-ups;
Citations & Related Records
Times Cited By KSCI : 5  (Citation Analysis)
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