Virtsev M.Yu., Sayfullina F.M.Published in:
Russian Journal of Entrepreneurship
– Volume 18, Number 23 (December 2017)

JEL classification: D81, G13, G31, G32

Keywords: cash flow, development project, net present value of the project, real option, risk management


Share:

Abstract:

Effective implementation of development projects is inextricably linked to the management of financial risks enabling to consider unstable environmental conditions, as well as giving managers the opportunity to make management decisions in the circumstances. This is an extremely important aspect for completing the construction of the facility with the planned targets. The method of real options considered by the authors as one of the important elements of risk management during the implementation of development projects, allows not only to take into account the instability and uncertainty of the external environment, but also enables the developer to make managerial decisions for the successful completion of the construction site with planned time and cost parameters. The presented conclusions can be useful for developers and other professional participants of the real estate market.

---

References:
Adelmeyer M.A. (2014). Optsiony KOLL i PUT: Ekonomicheskoe i matematicheskoe soderzhanie optsionov [CALL and PUT options: Economic and mathematical content of options] M.: Finansy i statistika. (in Russian).
Baev L.A., Egorova O.V. (2010). Problemy i vozmozhnosti prakticheskogo primeneniya teorii realnyh optsionov v otsenke i upravlenii investitsionnymi proektami [The Problems and Opportunities of the Practical Application of the Real Options Theory in Valuation and Management of the Investment Projects]. Bulletin of the South Ural State University. Series: economics and management. 16 (39(215)). 27-42. (in Russian).
Barinov A.E. (2016). Trudnosti prognozirovaniya investitsionnyh proektov v usloviyakh neopredelennosti rossiyskogo rynka [Difficulties in forecasting investment projects withing uncertainty of Russian market]. Problems of forecasting. (2). 119-135. (in Russian).
Bukhvalov A.V. (2004). Realnye optsiony v menedzhmente: vvedenie v problemu [Real options in management:introduction to the issue]. Russian Management Journal. (1). 3-32. (in Russian).
Buresh O.V., Soldatova L.A. (2015). Finansovoe obespechenie razvitiya zhilischnogo stroitelstva v usloviyakh finansovoy nestabilnosti [Financial support for housing construction development during financial instability]. Russian Journal of Housing Research. 2 (1). 19-28. (in Russian). doi: 10.18334/zhs.2.1.279.
Demkin I.V. (2016). Upravlenie riskami pryamogo investirovaniya s ispolzovaniem apparata teorii optsionov [Direct investment risk management through the options theory ]. Tekhnologiya mashinostroeniya. (4(46)). 73-84. (in Russian).
Gurov I.N. (2014). Zatraty na kapital pri finansirovanii innovatsionnyh proektov: otsenka premii za risk inflyatsii [Capital-related expenditures on financing of the innovation projects: evaluation of the inflation risk premium]. Creative economy. (6(90)). 34-48. (in Russian).
Karpova V.B. (2013). Osobennosti finansirovaniya investitsionnyh proektov v sfere innovatsiy [Features of investment projects financing in innovation field]. Russian Journal of Innovation Economics. 3 (2). 33-40. (in Russian). doi: 10.18334/inec.3.2.429.
Kochetkov A.V. (2016). Aspekty ispolzovaniya NPV kak modeli dokhodnogo podkhoda k otsenke. Alternativnyy metod [Aspects of using NPV as a model of a revenue approach to assessment. Alternative method]. Economic strategies. (7). 152-157. (in Russian).
Kovalev V.V. (2003). Metody otsenki investitsionnyh proektov [Methods for assessing investment projects] M.: Finansy i statistika. (in Russian).
Krukovskiy A.A. (2012). Model realnyh optsionov v investitsionnom analize [Model of real options in investment analysis] Models and information technologies of economic policy. 95-112. (in Russian).
Limitovskiy M.A. (2016). Investitsionnye proekty i realnye optsiony na razvivayuschikhsya rynkakh [Investment projects and real options in emerging markets] M.: Izdatelstvo Yurayt. (in Russian).
Lipsits I.V. (2010). Ekonomicheskiy analiz realnyh investitsiy [Economic analysis of real investments] M.: Magistr. (in Russian).
Lozinskaya A.M. (2016). Sovremennye vozmozhnosti otsenki kreditnogo riska pri ipotechnom zhilischnom kreditovanii [Modern possibilities for assessing credit risk in residential mortgage lending]. Global Markets and Financial Engineering. 3 (1). 7-20. (in Russian).
Markova A.V. (2014). Upravlenie proektnymi riskami s pomoschyu realnyh optsionov [Project risk management with real options]. Rynok tsennyh bumag. (20(275)). 66-68. (in Russian).
Okhrimenko A.A. (2012). Kontseptsiya realnyh optsionov v praktike prinyatiya investitsionnyh resheniy [The concept of real options in the practice of making investment decisions]. Chief financial officer. (07-08(35)). 41-44. (in Russian).
Selina V.P. (2011). Vozmozhnost ispolzovaniya teorii realnyh optsionov v upravlenii riskami developerskikh proektov v stroitelstve [The possibility of using the Real Options Theory in risk management of development projects in construction]. RISK: Resources, information, supply, competition. (2). 137-141. (in Russian).
Tkachenko I.N., Evseeva M.V. (2016). Vozmozhnost primeneniya kontraktnyh form gosudarstvenno-chastnogo partnerstva i spetsialnogo investitsionnogo kontrakta pri realizatsii kompleksnyh investitsionnyh proektov razvitiya territoriy [Possibility of using contractual forms of public-private partnerships and special investment contract during the implementation of complex investment projects of territorial development]. Journal of Public-Private Partnership. 3 (4). 273-290. (in Russian). doi: 10.18334/ppp.3.4.37438.
Volkov I.M., Grachev M.V. (2009). Proektnyy analiz: Prodvinutyy kurs [Project Analysis: Advanced Course] M.: INFRA-M. (in Russian).