Welcome to Francis Academic Press

Academic Journal of Business & Management, 2023, 5(10); doi: 10.25236/AJBM.2023.051019.

A Study on Value Assessment of E-Commerce Enterprises Based on the Model of Real Options

Author(s)

Lei Tang, Yongqing Zhang

Corresponding Author:
Yongqing Zhang
Affiliation(s)

University of Shanghai for Science and Technology, Shanghai, 200093, China

Abstract

With the rapid development of network technology, global e-commerce enterprises are mushrooming, and corresponding economic behaviors such as investment, financing and mergers and acquisitions of e-commerce enterprises are constantly appearing. Therefore, it is very important to construct the value assessment system of e-commerce enterprises. This paper takes the characteristics and value of e-commerce enterprises as a starting point, and explores the value assessment of e-commerce enterprises based on the real option theory of Black-Scholes (B-S), which is a model with good applicability in market transactions. Not only can the model reduce the computational complexity of enterprise value, it can also improve the accuracy of value assessment, which is now an important reference for the value assessment of e-commerce enterprises in the era of big data.

Keywords

e-commerce enterprise; real option; Black-Scholes; value assessment

Cite This Paper

Lei Tang, Yongqing Zhang. A Study on Value Assessment of E-Commerce Enterprises Based on the Model of Real Options. Academic Journal of Business & Management (2023) Vol. 5, Issue 10: 118-129. https://doi.org/10.25236/AJBM.2023.051019.

References

[1] Higson C., & Briginshaw J. (2000). Valuing Internet Business. Business Strategy Review, 11(1), 10-20. 

[2] Trueman B., Wong M. H. F., & Zhang X.-J. (2000). The Eyeballs Have It: Searching for the Value in Internet Stocks. Journal of Accounting Research, 38, 137-162.

[3] Lumpkin G. T., & Dess G. G. (2004). E-Business Strategies and Internet Business Models. Organizational Dynamics, 33(2), 161-173. 

[4] Lin C. C. (2003). A critical appraisal of customer satisfaction and e‐commerce. Managerial Auditing Journal, 18(3), 202-212.

[5] Alleman J. H., Alleman J. J., & Noam E. M. (1999). The new investment theory of real options and its implication for telecommunications economics (Vol. 34): Springer Science & Business Media.

[6] Sáenz‐Diez R., Gimeno R., & De Abajo C. (2008). Real Options Valuation: A Case Study of an E‐commerce Company. Journal of Applied Corporate Finance, 20(2), 129-143. 

[7] Nembhard H. B., Shi L., & Park C. S. (2000). Real option models for managing manufacturing system changes in the new economy. The Engineering Economist, 45(3), 232-258. 

[8] Tsai W.-H., & Hung S.-J. (2009). Dynamic pricing and revenue management process in Internet retailing under uncertainty: An integrated real options approach. Omega, 37(2), 471-481. 

[9] Gupta S., Lehmann D. R., & Stuart J. A. (2004). Valuing Customers. Journal of Marketing Research, 41(1), 7-18. 

[10] Kalyebara B., & Islam S. (2014). Discounted Cash Flow for Tom.com. In Corporate Governance, Capital Markets, and Capital Budgeting (pp.75-106): Springer.

[11] Tan Z. (2017). Application of Discounted Cash Flow Model Valuation–Wal-Mart. Available at SSRN 3100702.

[12] Zhou L., Xian K. T., & Li B. (2009, May). Analysis of Developing Enterprise Quality Credit Classified Supervision System Based on B/S Model. In 2009 International Symposium on Information Engineering and Electronic Commerce (pp. 500-505). IEEE.

[13] Cox J. C., & Ross S. A. (1976). The valuation of options for alternative stochastic processes. Journal of financial economics, 3(1-2), 145-166. 

[14] Coopersmith E. M. and P. C. Cunningham (2002). A Practical Approach to Evaluating the Value of Information and Real Option Decisions in the Upstream Petroleum Industry. SPE Annual Technical Conference and Exhibition. doi: https://doi.org/10.2118/77582-MS 

[15] Harun H., & Abdullah M. (2019). Empirical Performance of a Model-Free Volatility against the Different Option Strike Size Discreteness. Malaysian Journal of Mathematical Sciences, 13, 1-13.