Outputs (24)

Corporate Investment Decisions with Switch Flexibility, Constraints, and Path-dependency (2024)
Journal Article
Martzoukos, S., Trigeorgis, L., & Pospori, N. (2024). Corporate Investment Decisions with Switch Flexibility, Constraints, and Path-dependency. Review of Quantitative Finance and Accounting, https://doi.org/10.1007/s11156-023-01234-4

We model sequential, corporate investment decisions with time-to-build delays, operating scale mode switching, operating constraints, and path dependencies. We also account for stochastic salvage (abandonment) values that are utilization (path) depen... Read More about Corporate Investment Decisions with Switch Flexibility, Constraints, and Path-dependency.

CEO personality traits, strategic flexibility, and firm dynamics (2023)
Journal Article
Aabo, T., Pantzalis, C., Park, J. C., Trigeorgis, L., & Wulff, J. N. (2024). CEO personality traits, strategic flexibility, and firm dynamics. Journal of Corporate Finance, 84, Article 102524. https://doi.org/10.1016/j.jcorpfin.2023.102524

Reexamining CEO personality traits from a real options theory perspective, we suggest that the firm's strategic flexibility can be worsened by CEO conscientiousness and neuroticism. We use a measure of strategic flexibility as the firm's ability to t... Read More about CEO personality traits, strategic flexibility, and firm dynamics.

Value Uncertainty (2023)
Journal Article
Bali, T. G., Del Viva, L., Hefnawy, M. E., & Trigeorgis, L. (2023). Value Uncertainty. Management Science, https://doi.org/10.1287/mnsc.2023.4888

We examine how time-series volatility of book-to-market (UNC) is priced in equity returns and the relative contributions of its book volatility (variations in earnings and book value) and market volatility components (shocks in required return). UNC... Read More about Value Uncertainty.

Enhancement in a firm's information environment via options trading and the efficiency of corporate investment (2023)
Journal Article
Anagnostopoulou, S. C., Trigeorgis, L., & Tsekrekos, A. E. (2023). Enhancement in a firm's information environment via options trading and the efficiency of corporate investment. Journal of Banking and Finance, 149, Article 106809. https://doi.org/10.1016/j.jbankfin.2023.106809

We examine the association between enhancement in a firm's information environment via options trading and firm investment efficiency. Investment inefficiency is partly driven by information asymmetries between firm managers and capital providers, ag... Read More about Enhancement in a firm's information environment via options trading and the efficiency of corporate investment.

Compete, Cooperate, or Both? Integrating the Demand Side into Patent Deployment Strategies for the Commercialization and Licensing of Technology (2022)
Journal Article
Trigeorgis, L., Baldi, F., & Makadok, R. (2022). Compete, Cooperate, or Both? Integrating the Demand Side into Patent Deployment Strategies for the Commercialization and Licensing of Technology. Academy of Management Review, 47(1), 31-58. https://doi.org/10.5465/amr.2018.0119

Profiting from innovation typically involves a choice between commercializing a patented technology in the product market to exploit proprietary advantage (i.e., competition) or licensing the technology to an incumbent in the market for ideas (a form... Read More about Compete, Cooperate, or Both? Integrating the Demand Side into Patent Deployment Strategies for the Commercialization and Licensing of Technology.

Is bailout insurance and tail risk priced in bank equities? (2021)
Journal Article
Del Viva, L., Kasanen, E., Saunders, A., & Trigeorgis, L. (2021). Is bailout insurance and tail risk priced in bank equities?. Journal of Financial Stability, 55, Article 100909. https://doi.org/10.1016/j.jfs.2021.100909

We present a pricing model of bank bailout insurance guarantees against tail risk and empirical evidence that provides a rational explanation why big bank equities “underperform” relative to small banks during normal times while they “overperform” du... Read More about Is bailout insurance and tail risk priced in bank equities?.

Asymmetric Returns and the Economic Content of Accruals and Investment (2021)
Journal Article
Del Viva, L., Kothari, S., Lambertides, N., & Trigeorgis, L. (2021). Asymmetric Returns and the Economic Content of Accruals and Investment. Management Science, 67(6), 3921-3942. https://doi.org/10.1287/mnsc.2020.3676

This study contributes to our understanding of what accruals capture and how they relate to the distribution of future returns. It examines the past and future growth components of accruals and shows that, whereas past growth is negatively associated... Read More about Asymmetric Returns and the Economic Content of Accruals and Investment.

Valuation of brand equity and retailer growth strategies using real options (2021)
Journal Article
Trigeorgis, L., Baldi, F., & Katsikeas, C. S. (2021). Valuation of brand equity and retailer growth strategies using real options. Journal of Retailing, 97(4), 523-544. https://doi.org/10.1016/j.jretai.2021.01.002

In marketing, significant attention has been devoted to the study of drivers and outcomes of strategic flexibility drawing on real options theory. However, research that quantifies the specific value of flexibility reflected in a bundle of strategic... Read More about Valuation of brand equity and retailer growth strategies using real options.

Outsourcing flexibility under financial constraints (2021)
Journal Article
Choi, J. J., Ju, M., Trigeorgis, L., & Zhang, X. T. (2021). Outsourcing flexibility under financial constraints. Journal of Corporate Finance, 67, Article 101890. https://doi.org/10.1016/j.jcorpfin.2021.101890

We posit that outsourcing flexibility helps overcome financial constraints and provide evidence concerning the role of financial constraints and its interaction with operational flexibility on the likelihood and market value of outsourcing. We find t... Read More about Outsourcing flexibility under financial constraints.

US government TARP bailout and bank lottery behavior (2020)
Journal Article
Del Viva, L., Kasanen, E., Saunders, A., & Trigeorgis, L. (2021). US government TARP bailout and bank lottery behavior. Journal of Corporate Finance, 66, https://doi.org/10.1016/j.jcorpfin.2020.101777

Considerable debate surrounds how the US government's TARP bailout intervention has affected the risk-taking and moral hazard behavior of U.S. banks around the global financial crisis. We examine this issue with a focus on lottery behavior introducin... Read More about US government TARP bailout and bank lottery behavior.

Capacity investment choices under cost heterogeneity and output flexibility in oligopoly (2020)
Journal Article
Chevalier-Roignant, B., Flath, C. M., Kort, P. M., & Trigeorgis, L. (2021). Capacity investment choices under cost heterogeneity and output flexibility in oligopoly. European Journal of Operational Research, 290(3), 1154-1173. https://doi.org/10.1016/j.ejor.2020.08.046

We study capacity investment decisions among oligopoly firms under conditions of cost heterogeneity and output flexibility within capacity constraints. Output flexibility causes the value of the firm to be convex in the state of demand, which implies... Read More about Capacity investment choices under cost heterogeneity and output flexibility in oligopoly.

Multinationality, portfolio diversification, and asymmetric MNE performance: The moderating role of real options awareness (2020)
Journal Article
Ioulianou, S. P., Leiblein, M. J., & Trigeorgis, L. (2021). Multinationality, portfolio diversification, and asymmetric MNE performance: The moderating role of real options awareness. Journal of International Business Studies, 52(3), 388-408. https://doi.org/10.1057/s41267-020-00357-3

The field of international business is fundamentally concerned with the implications of managerial actions that affect multinational risk and performance outcomes. While portfolio diversification and real options theory are often used to describe the... Read More about Multinationality, portfolio diversification, and asymmetric MNE performance: The moderating role of real options awareness.

Individual antecedents of real options appraisal: The role of national culture and ambiguity (2020)
Journal Article
Driouchi, T., Trigeorgis, L., & So, R. H. (2020). Individual antecedents of real options appraisal: The role of national culture and ambiguity. European Journal of Operational Research, 286(3), 1018-1032. https://doi.org/10.1016/j.ejor.2020.03.015

This paper studies the antecedents of cognitive options appraisal in a cross-cultural sample of specialists and generalists. Examining the role of national culture and ambiguity in the real option logic, we show that individuals have more propensity... Read More about Individual antecedents of real options appraisal: The role of national culture and ambiguity.

Investor ambiguity, systemic banking risk and economic activity: The case of too-big-to-fail (2019)
Journal Article
Driouchi, T., So, R. H., & Trigeorgis, L. (2020). Investor ambiguity, systemic banking risk and economic activity: The case of too-big-to-fail. Journal of Corporate Finance, 62, Article 101549. https://doi.org/10.1016/j.jcorpfin.2019.101549

This paper examines the relationship between investors' ambiguity in the financial options market and systemic banks' risk. Eliciting ambiguity information from option pricing data on the twelve major U.S. banks between 2003 and 2010, we show that hi... Read More about Investor ambiguity, systemic banking risk and economic activity: The case of too-big-to-fail.

Growth Options and Related Stock Market Anomalies: Profitability, Distress, Lotteryness, and Volatility (2019)
Journal Article
Bali, T. G., Del Viva, L., Lambertides, N., & Trigeorgis, L. (2020). Growth Options and Related Stock Market Anomalies: Profitability, Distress, Lotteryness, and Volatility. Journal of Financial and Quantitative Analysis, 55(7), 2150-2180. https://doi.org/10.1017/s0022109019000619

We provide new evidence on the economic role of growth options behind the profitability, distress, lotteryness, and volatility anomalies. We use idiosyncratic skewness to measure growth options and estimate expected idiosyncratic skewness capturing i... Read More about Growth Options and Related Stock Market Anomalies: Profitability, Distress, Lotteryness, and Volatility.

Disruptive Innovation, Market Entry and Production Flexibility in Heterogeneous Oligopoly (2019)
Journal Article
Chevalier-Roignant, B., Flath, C. M., & Trigeorgis, L. (2019). Disruptive Innovation, Market Entry and Production Flexibility in Heterogeneous Oligopoly. Production and Operations Management, 28(7), https://doi.org/10.1111/poms.12995

We develop a model of oligopoly competition involving innovation effort, market entry and production flexibility under demand uncertainty. Several heterogeneous firms make efforts to develop new prototypes; if they succeed, they hold a shared option... Read More about Disruptive Innovation, Market Entry and Production Flexibility in Heterogeneous Oligopoly.

Real Options in Operations Research: A Review (2017)
Journal Article
Trigeorgis, L., & Tsekrekos, A. E. (2018). Real Options in Operations Research: A Review. European Journal of Operational Research, 270(1), 1-24. https://doi.org/10.1016/j.ejor.2017.11.055

The Real Options approach to decision-making has been useful in capturing and valuing the flexibility inherent in many operating decisions that decision makers are faced with. In Operations Research (OR), a field that encompasses a plethora of proble... Read More about Real Options in Operations Research: A Review.

Flexibility as firm value driver: Evidence from offshore outsourcing (2017)
Journal Article
Choi, J. J., Ju, M., Kotabe, M., Trigeorgis, L., & Zhang, X. T. (2018). Flexibility as firm value driver: Evidence from offshore outsourcing. Global Strategy Journal, 8(2), 351-376. https://doi.org/10.1002/gsj.1181

This article tests real options theory predictions that uncertainty and flexibility are key value drivers for offshore outsourcing moderated by switching costs. Examining firm-specific and market data for outsourcing cases by U.S. firms, we find that... Read More about Flexibility as firm value driver: Evidence from offshore outsourcing.

Multinationality and firm value: The role of real options awareness (2017)
Journal Article
Ioulianou, S., Trigeorgis, L., & Driouchi, T. (2017). Multinationality and firm value: The role of real options awareness. Journal of Corporate Finance, 46, 77-96. https://doi.org/10.1016/j.jcorpfin.2017.06.011

We contribute to multinationality and real options theories by considering the role of firm heterogeneity in real options awareness for MNCs. We test the joint impact of real options awareness (RO-AWN) and multinationality on firm value using an exte... Read More about Multinationality and firm value: The role of real options awareness.

Strategic NPV: Real Options and Strategic Games under Different Information Structures (2017)
Journal Article
Smit, H. T., & Trigeorgis, L. (2017). Strategic NPV: Real Options and Strategic Games under Different Information Structures. Strategic Management Journal, 38(13), 2555-2578. https://doi.org/10.1002/smj.2665

Among the most difficult firm strategic choices is the trade-off between making a long-term commitment or holding off on investment in the face of uncertainty. To operationalize strategic management theory under demand, technological and competitive... Read More about Strategic NPV: Real Options and Strategic Games under Different Information Structures.

Real Options, Idiosyncratic Skewness, and Diversification (2017)
Journal Article
Del Viva, L., Kasanen, E., & Trigeorgis, L. (2017). Real Options, Idiosyncratic Skewness, and Diversification. Journal of Financial and Quantitative Analysis, 52(1), 215-241. https://doi.org/10.1017/s0022109016000703

We show how firm-level real options lead to idiosyncratic skewness in stock returns. We then document empirically that growth option variables are positive and significant determinants of idiosyncratic skewness. The real option impact on skewness is... Read More about Real Options, Idiosyncratic Skewness, and Diversification.

Corporate liquidity and dividend policy under uncertainty (2017)
Journal Article
Koussis, N., Martzoukos, S. H., & Trigeorgis, L. (2017). Corporate liquidity and dividend policy under uncertainty. Journal of Banking and Finance, 81, 221-235. https://doi.org/10.1016/j.jbankfin.2017.01.021

We examine optimal liquidity (retained earnings) and dividend choice incorporating debt financing with risk of default and bankruptcy costs as well as growth options under revenue uncertainty. We revisit the conditions for dividend policy irrelevancy... Read More about Corporate liquidity and dividend policy under uncertainty.

Real options theory in strategic management (2016)
Journal Article
Trigeorgis, L., & Reuer, J. J. (2017). Real options theory in strategic management. Strategic Management Journal, 38(1), 42-63. https://doi.org/10.1002/smj.2593

This article provides a review of real options theory (ROT) in strategic management research. We review the fundamentals of ROT and provide a taxonomy of this research. By synthesizing and critiquing research on real options, we identify a number of... Read More about Real options theory in strategic management.

Option implied ambiguity and its information content: Evidence from the subprime crisis (2015)
Journal Article
Driouchi, T., Trigeorgis, L., & So, R. H. (2018). Option implied ambiguity and its information content: Evidence from the subprime crisis. Annals of Operations Research, 262(2), 463-491. https://doi.org/10.1007/s10479-015-2079-y

This paper studies option investors’ tendency to deviate from risk-neutrality around extreme financial events. We incorporate ambiguity into Black–Scholes theory and analyze the lead–lag association between option and stock markets during 2006–2008.... Read More about Option implied ambiguity and its information content: Evidence from the subprime crisis.