Cultural And Creative Industry Investment Decisions Based On Real Option Analysis

As creative industry has developed rapidly nowadays, it has already become the pillar of developing economy in every country on the earth. Creative industry which has high returns is getting much more attention from the capital market. However with the uncertain market value, it brings high risk on investment. Although the common evaluation methods can be used to evaluate existing assets, for creative products it is hardly be evaluated through common methods because the values of relative products often grow irregularly. Real option could provide quantitative method and make relatively precise evaluation on growth in future. So far, there aren't much research on analyzing investment on creative industry through real option method. In the paper we are trying to make substantial analysis by using logically academic method, and demonstrated with real business case which brings pragmatic meanings to our research.Chapter One, firstly it introduces the researching background and aims, then it make definition related to the researching content, while presents the mainframe for the paper.Chapter Two, from four researching areas of which are creative, creative industry, real option, investment evaluation on creative industry, it makes review of history literature. Chapter Three, it analyses the characteristics of creative industry, from perspective of which are characteristic difference, value-adding of value and value-chain, cycle of invested money, it has analyses core-value in creative industry, providing important researching stuffs for next chapter.Chapter Four, firstly it introduces traditional evaluation methods, follows by the definition and analysis of real option on different phases. Meanwhile it makes comparison between method of real option and method of traditional evaluation.Chapter Five, with the analyzing result of value-core in creative industry it builds model about value of creative industry.Chapter Six, at last a real business case is given out to make enforcement of the effect of this research. In the meantime, the paper gives study of the characteristics of value in a systematical way. Quantitative evaluation method is given out to evaluating creative industry. In humble manner, I sincerely hope this paper can make contribution to the development of capital market of creative industry.