When Are Real Options Exercised? An Empirical Study of Mine Closings
In this article, we study a well-known real option: the opening and closing of mines. Using a new database that tracks the annual opening and closing decisions of 285 developed North American gold mines in the period 1988-1997, we find that the real options model is a useful descriptor of mines'...
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| Format: | Journal article |
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2002
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| _version_ | 1797080884852031488 |
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| author | Tufano, P Moel, A |
| author_facet | Tufano, P Moel, A |
| author_sort | Tufano, P |
| collection | OXFORD |
| description | In this article, we study a well-known real option: the opening and closing of mines. Using a new database that tracks the annual opening and closing decisions of 285 developed North American gold mines in the period 1988-1997, we find that the real options model is a useful descriptor of mines' opening and shutting decisions. In addition, we find that the decision whether to shut a mine is related to firm-specific managerial factors not normally considered within a strict real options model. |
| first_indexed | 2024-03-07T01:06:39Z |
| format | Journal article |
| id | oxford-uuid:8b90b0ed-7346-46e4-9998-9c69556ad442 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T01:06:39Z |
| publishDate | 2002 |
| record_format | dspace |
| spelling | oxford-uuid:8b90b0ed-7346-46e4-9998-9c69556ad4422022-03-26T22:38:53ZWhen Are Real Options Exercised? An Empirical Study of Mine ClosingsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:8b90b0ed-7346-46e4-9998-9c69556ad442Saïd Business School - Eureka2002Tufano, PMoel, AIn this article, we study a well-known real option: the opening and closing of mines. Using a new database that tracks the annual opening and closing decisions of 285 developed North American gold mines in the period 1988-1997, we find that the real options model is a useful descriptor of mines' opening and shutting decisions. In addition, we find that the decision whether to shut a mine is related to firm-specific managerial factors not normally considered within a strict real options model. |
| spellingShingle | Tufano, P Moel, A When Are Real Options Exercised? An Empirical Study of Mine Closings |
| title | When Are Real Options Exercised? An Empirical Study of Mine Closings |
| title_full | When Are Real Options Exercised? An Empirical Study of Mine Closings |
| title_fullStr | When Are Real Options Exercised? An Empirical Study of Mine Closings |
| title_full_unstemmed | When Are Real Options Exercised? An Empirical Study of Mine Closings |
| title_short | When Are Real Options Exercised? An Empirical Study of Mine Closings |
| title_sort | when are real options exercised an empirical study of mine closings |
| work_keys_str_mv | AT tufanop whenarerealoptionsexercisedanempiricalstudyofmineclosings AT moela whenarerealoptionsexercisedanempiricalstudyofmineclosings |