The market premium for the option to close: evidence from Australian gold mining firms. (21st December 2015)
- Record Type:
- Journal Article
- Title:
- The market premium for the option to close: evidence from Australian gold mining firms. (21st December 2015)
- Main Title:
- The market premium for the option to close: evidence from Australian gold mining firms
- Authors:
- Kelly, Simone
- Abstract:
- Abstract: This study shows the market value of gold mining firms contains a premium for the option to close. The sample uses 41 gold mining producers listed on the Australian Stock Exchange from 1987 to 2013. The premium of the market price over the present value of cash flows is isolated and a pooled cross‐sectional regression tests the degree of association between that premium and theoretical option premiums. The results show market prices incorporate a premium reflecting the option to temporarily close operations. The magnitude of the option premium to close depends on whether firms are out or in the money options.
- Is Part Of:
- Accounting and finance. Volume 57:Number 2(2017)
- Journal:
- Accounting and finance
- Issue:
- Volume 57:Number 2(2017)
- Issue Display:
- Volume 57, Issue 2 (2017)
- Year:
- 2017
- Volume:
- 57
- Issue:
- 2
- Issue Sort Value:
- 2017-0057-0002-0000
- Page Start:
- 511
- Page End:
- 531
- Publication Date:
- 2015-12-21
- Subjects:
- Gold mining firms -- Real options -- Valuation
Accounting -- Periodicals
Finance -- Periodicals
657.05 - Journal URLs:
- http://estar.bl.uk/cgi-bin/sciserv.pl?collection=journals&journal=08105391 ↗
http://onlinelibrary.wiley.com/ ↗ - DOI:
- 10.1111/acfi.12181 ↗
- Languages:
- English
- ISSNs:
- 0810-5391
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 0573.589300
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 1112.xml