Feed Your Mind in Bahrain “Real Option Games: Theory and Practice”, Thursday 19th June 2014

Food for thought. Feed your mind.

FYM events are the ideal forum for your company and its executives to interact with business professionals.

What will we take out from the event?

  • Hot business issues – bite sized
  • Learn about the latest topics from a leading authority
  • Can be seen as a break out and brain storming session
  • Hear about international experiences
  • Discuss and resolve issues that your company faces
  • An excellent use of time

The Next Feed Your Mind in Bahrain:

Speaker: Dr Alcino Azevedo (Hull University Business School)

Date:        Thursday June 19, 2014  

Timing:   10:00am to 12:00pm

Venue:    The Radisson Blue Diplomat Hotel (Bahrain)

 

Abstract

The classical investment appraisal techniques (i.e., Payback period, IRR and NPV) make the assumption that the cash flows associated with an investment project can be estimated with certainty. Yet, this assumption is unrealistic for most investment projects, particularly those with very long lifetime. The difficulty in estimating with certainty the future cash flows of a project is because these are affected by numerous factors which are exogenous to the firms, for instance, the demand for the project’s output can be lower or more volatile than first expected, the arrival of new competitors can erode profits, the appearance of new technologies in the market can turn projects obsolete and the performance of technologies after adoption can be worse than originally expected. Hence, the evaluation of investment projects should take into account the uncertainty underlying their expected cash flows. The combination of the real options theory and concepts from the game theory led to a new investment appraisal technique, named real option games (see Azevedo and Paxson, European Journal of Operational Research, 2014), used in both academic and business contexts which have yielded very promising results.

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About the speaker

Dr Alcino Azevedo joined the Hull University Business School as a Lecturer in Finance in November 2008. Previously he was attached to the Manchester Business School (2004-09), where he completed his PhD, with a dissertation titled “Investment Decisions under Uncertainty and Competition: a Real Options Approach”, and was Teaching Assistant (2007-08). He has an MSc in Finance from the Universidade Católica Portuguesa (2001-02), gained with a First, and studied Engineering at the University of Minho, graduated with a Distinction. Before embarking on his PhD, he worked several years in the manufacturing sector in multinational corporations in various management positions (1997-2003). At Hull University Business School, Dr Alcino Azevedo is involved in undergraduate and postgraduate teaching and is currently the Programme Leader of the MSc Financial Management (2011-2014). His work has been presented at numerous international conferences, including the European Financial Management Association Conference, Applied Financial Economics Conference, USA Energy Economics/International Association for Energy Economics Conference, Multinational Finance Society Conference, Real Options Conferences held at London Business School, Haas School of Business, Âbo Academi University, Luiss Business School, University of Minho, University of Santiago, University of Pontifica Universidade Catolica, Portuguese Finance Network Conferences held at the Universidade de Aveiro and the University of Coimbra, and British Accounting Association Conferences held at Blackpool City and the University of London. His work is published at the European Journal of Operational Research and Journal of Financial Markets Institutions and Money and current preferred research interests are theoretical or empirical research on Hedge Funds, Risk Management, Derivative Securities, Real Options, Renewable Energy and Market Microstructure. He is supervising currently five PhD students and is ad hoc referee of the European Journal of Finance, Journal of Management and Organization, European Journal of Operational Research, Journal of Economic Dynamics and Control and Journal of Agricultural Economics and Development.

 

Book now


The event is free to attend but you must book in advance. To book your place contact Marvin at Tel. No. +973 17216002 or email at marvin@mdciedu.com, www.mdciedu.com

 

This is one of a series of ‘Feed your Mind’ events organised by Hull University Business School and MDCI. More events will be announced soon.

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