The M&a Decision-making Problem's Stduy Based On Game Theory And Real Option Model

As China's economic reform step by step,market equity transactions are very active in mergers and acquisitions activity and gradually increase,but how to assess the value of target companies and found that the potential value of investment decision-making has become the key factor in the success of mergers and acquisitions.The traditional method of business valuation theory and is often overlooked as a organic whole enterprise of benefit in the future capabilities and management flexibility,uncertainties and other factors.How objective and impartial evaluation of target companies in mergers and acquisitions investment value assessment of the industry has become a serious problem.Real Options as a non-investment decision-making under uncertainty provides a proactive approach that emphasizes the uncertainty of the value of flexibility under management.In order to simultaneously solve the investment market environment of uncertainty,investment irreversibility and investment issues such as competition,so all participants get the best investment of time and the optimal investment program,option game method has become a powerful investment analysis tools.This article begins with an overview of M&M theory and the traditional method of business investment decisions,and discussed the option game theory applied to mergers and acquisitions in the investment decision-making method than the traditional advantages.Then the system described real option game theory system for the application of the back section of option game theory model of pave the way to do the work.We first apply Binomial Option Pricing Model and Game Theory Analysis of the growth model based on real option game model of mergers and acquisitions,mergers and acquisitions reached a decision and the investment cost,investment returns, risk-neutral probabilities,risk-free rate of return and generated when mergers and acquisitions and other factors effect the interaction between,and has been the success of the two acquisitions required for enterprise project benefits and the critical cost threshold.On this basis,leads to the acquisition cost of investment income investment options asymmetric game model,this acquisition of the option game model is more close to reality,and got some M & A decision-making with reference to the significance of the findings.Finally made the whole chapter summary and prospects for future research in this field.Mergers and acquisitions to achieve the ultimate goal is to increase corporate value. Game theory applied to options in the merger decision reflects the values of a modern enterprise,it is to enhance decision-making capacity,and improving scientific decision making to prevent the risk of business decisions are of great value and significance.