메뉴 건너뛰기




Volumn 84, Issue 1, 2009, Pages 133-155

Real options and escalation of commitment: A behavioral analysis of capital investment decisions

Author keywords

Capital budgeting; Escalation of commitment; Real options; Sunk cost effect

Indexed keywords


EID: 61349188275     PISSN: 00014826     EISSN: None     Source Type: Journal    
DOI: 10.2308/accr.2009.84.1.133     Document Type: Article
Times cited : (45)

References (58)
  • 1
    • 0344162439 scopus 로고    scopus 로고
    • What is not a real option: Considering boundaries for the application of real options to business strategy
    • January
    • Adner, R., and D. A. Levinthal. 2004. What is not a real option: Considering boundaries for the application of real options to business strategy. Academy of Management Review 29 (January): 74-85.
    • (2004) Academy of Management Review , vol.29 , pp. 74-85
    • Adner, R.1    Levinthal, D.A.2
  • 3
    • 58149369461 scopus 로고
    • Individual construct accessibility, person memory, and the recall-judgment link: The case of information overload
    • November
    • Bargh, J. A., and R. D. Thein. 1985. Individual construct accessibility, person memory, and the recall-judgment link: The case of information overload. Journal of Personality and Social Psychology 49 (November): 1129-1146.
    • (1985) Journal of Personality and Social Psychology , vol.49 , pp. 1129-1146
    • Bargh, J.A.1    Thein, R.D.2
  • 4
    • 0034328207 scopus 로고    scopus 로고
    • Beyond behaviorism: On the automaticity of higher mental processes
    • November
    • -, and M. J. Ferguson. 2000. Beyond behaviorism: On the automaticity of higher mental processes. Psychological Bulletin 126 (November): 925-945.
    • (2000) Psychological Bulletin , vol.126 , pp. 925-945
    • Bargh, J.A.1    Thein, R.D.2    Ferguson, M.J.3
  • 5
    • 0023020183 scopus 로고
    • The moderator-mediator variable distinction in social psycho-logical research: Conceptual, strategic, and statistical considerations
    • Baron, R. M., and D. A. Kenny. 1986. The moderator-mediator variable distinction in social psycho-logical research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology 51: 1173-1182.
    • (1986) Journal of Personality and Social Psychology , vol.51 , pp. 1173-1182
    • Baron, R.M.1    Kenny, D.A.2
  • 6
    • 59349102391 scopus 로고
    • Effects of counter-explanation on escalation of commitment: An experimental assessment of individual and collective decision
    • Beeler, J. D. 1988. Effects of counter-explanation on escalation of commitment: An experimental assessment of individual and collective decision. Advances in Accounting Behavioral Research 1: 85-99.
    • (1988) Advances in Accounting Behavioral Research , vol.1 , pp. 85-99
    • Beeler, J.D.1
  • 7
    • 21344476299 scopus 로고
    • Strategy through the option lens: An integrated view of resource investments and the incremental-choice process
    • October
    • Bowman, E. H., and D. Hurry. 1993. Strategy through the option lens: An integrated view of resource investments and the incremental-choice process. Academy of Management Review 18 (October): 760-782.
    • (1993) Academy of Management Review , vol.18 , pp. 760-782
    • Bowman, E.H.1    Hurry, D.2
  • 9
    • 0031161748 scopus 로고    scopus 로고
    • Real options in practice: An exploratory study of how finance officers deal with flexibility in capital appraisal
    • June
    • Busby, J. S., and C. G. C. Pitts. 1997. Real options in practice: An exploratory study of how finance officers deal with flexibility in capital appraisal. Management Accounting Research 8 (June): 169-186.
    • (1997) Management Accounting Research , vol.8 , pp. 169-186
    • Busby, J.S.1    Pitts, C.G.C.2
  • 10
    • 0030495562 scopus 로고    scopus 로고
    • Automatic activation of social information processing goals: Nonconscious priming reproduces effects of explicit conscious instructions
    • September
    • Chartrand, T. L., and J. A. Bargh. 1996. Automatic activation of social information processing goals: Nonconscious priming reproduces effects of explicit conscious instructions. Journal of Personality and Social Psychology 71 (September): 464-478.
    • (1996) Journal of Personality and Social Psychology , vol.71 , pp. 464-478
    • Chartrand, T.L.1    Bargh, J.A.2
  • 11
    • 2142667474 scopus 로고    scopus 로고
    • The effects of hurdle rates on the level of escalation of commitment in capital budgeting
    • Cheng, M. M., A. K. Schulz, P. F. Luckett, and P. Booth. 2003. The effects of hurdle rates on the level of escalation of commitment in capital budgeting. Behavioral Research in Accounting 15: 63-85.
    • (2003) Behavioral Research in Accounting , vol.15 , pp. 63-85
    • Cheng, M.M.1    Schulz, A.K.2    Luckett, P.F.3    Booth, P.4
  • 12
    • 0031237224 scopus 로고    scopus 로고
    • Escalating commitment to unprofitable projects: Replication and cross-cultural extension
    • September
    • Chow, C. W., P. Harrison, T. Lindquist, and A. Wu. 1997. Escalating commitment to unprofitable projects: Replication and cross-cultural extension. Management Accounting Research 8 (September): 347-362.
    • (1997) Management Accounting Research , vol.8 , pp. 347-362
    • Chow, C.W.1    Harrison, P.2    Lindquist, T.3    Wu, A.4
  • 13
    • 0000927980 scopus 로고
    • The moderating effects of strategy, visibility, and involvement on allocation behavior An extension of Staw's escalation paradigm
    • Conlon, E. J., and G. Wolf. 1980. The moderating effects of strategy, visibility, and involvement on allocation behavior An extension of Staw's escalation paradigm. Organizational Behavior and Human Performance 26 (2): 172-192.
    • (1980) Organizational Behavior and Human Performance , vol.26 , Issue.2 , pp. 172-192
    • Conlon, E.J.1    Wolf, G.2
  • 14
    • 61349127640 scopus 로고    scopus 로고
    • Copeland, T. E., and V. Antikarov. 2001. Real Options: A Practitioner's Guide. New York, NY: Texere. Coy, P. 1999. Exploiting uncertainty: The real-options revolution in decision-making. BusinessWeek Online (June 7).
    • Copeland, T. E., and V. Antikarov. 2001. Real Options: A Practitioner's Guide. New York, NY: Texere. Coy, P. 1999. Exploiting uncertainty: The "real-options" revolution in decision-making. BusinessWeek Online (June 7).
  • 17
    • 14544278809 scopus 로고    scopus 로고
    • Thinking about commitment: Accessibility of commitment and willingness to sacrifice
    • March
    • Etcheverry, P. E., and B. Le. 2005. Thinking about commitment: Accessibility of commitment and willingness to sacrifice. Personal Relationships 12 (March): 103-123.
    • (2005) Personal Relationships , vol.12 , pp. 103-123
    • Etcheverry, P.E.1    Le, B.2
  • 19
    • 0022773158 scopus 로고
    • Attitude accessibility as a moderator of the attitude-perception and attitude-behavior relations: An investigation of the 1984 presidential election
    • September
    • -, and C. J. Williams. 1986. Attitude accessibility as a moderator of the attitude-perception and attitude-behavior relations: An investigation of the 1984 presidential election. Journal of Personality and Social Psychology 51 (September): 505-514.
    • (1986) Journal of Personality and Social Psychology , vol.51 , pp. 505-514
    • Fazio, R.H.1    Sanbonmatsu, D.M.2    Powell, M.L.3    Kardes, F.R.4    Williams, C.J.5
  • 21
    • 4043114699 scopus 로고    scopus 로고
    • Reality check for real options: Applying Black-Scholes analysis to capital spending projects has one big flaw
    • September 1
    • Fink, R. 2001. Reality check for real options: Applying Black-Scholes analysis to capital spending projects has one big flaw. CFO Magazine (September 1).
    • (2001) CFO Magazine
    • Fink, R.1
  • 22
    • 0001815993 scopus 로고    scopus 로고
    • De-escalation strategies: Some experimental evidence
    • Ghosh, D. 1997. De-escalation strategies: Some experimental evidence. Behavioral Research in Accounting 9: 88-112.
    • (1997) Behavioral Research in Accounting , vol.9 , pp. 88-112
    • Ghosh, D.1
  • 23
    • 84990627020 scopus 로고
    • Examining the joint roles of responsibility and reinforcement history in recommitment
    • September/October
    • Goltz, S. M. 1993. Examining the joint roles of responsibility and reinforcement history in recommitment. Decision Sciences 24 (September/October): 977-994.
    • (1993) Decision Sciences , vol.24 , pp. 977-994
    • Goltz, S.M.1
  • 24
    • 0000318873 scopus 로고    scopus 로고
    • The theory and practice of corporate finance: Evidence from the field
    • May
    • Graham, J. R., and C. R. Harvey. 2001. The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics 60 (May): 187-243.
    • (2001) Journal of Financial Economics , vol.60 , pp. 187-243
    • Graham, J.R.1    Harvey, C.R.2
  • 25
    • 0001092588 scopus 로고
    • An incentive to shirk, privately held information, and managers' project evaluation decisions
    • October
    • Harrell, A., and P. Harrison. 1994. An incentive to shirk, privately held information, and managers' project evaluation decisions. Accounting, Organizations and Society 19 (October): 569-578.
    • (1994) Accounting, Organizations and Society , vol.19 , pp. 569-578
    • Harrell, A.1    Harrison, P.2
  • 27
    • 0002175690 scopus 로고    scopus 로고
    • Knowledge activation: Accessibility, applicability and salience
    • edited by E. T. Higgins, and A. W. Kruglanski, New York, NY: Guilford
    • -. 1996. Knowledge activation: Accessibility, applicability and salience. In Social Psychology: Handbook of Basic Principles, edited by E. T. Higgins, and A. W. Kruglanski, 133-168. New York, NY: Guilford.
    • (1996) Social Psychology: Handbook of Basic Principles , pp. 133-168
    • Higgins, E.1    King, G.2    Mavin, G.3
  • 29
    • 0000534362 scopus 로고    scopus 로고
    • Laboratory evidence on how managers intuitively value real growth options
    • September
    • Howell, S. D., and A. J. Jagle. 1997. Laboratory evidence on how managers intuitively value real growth options. Journal of Business Finance & Accounting 24 (September): 915-935.
    • (1997) Journal of Business Finance & Accounting , vol.24 , pp. 915-935
    • Howell, S.D.1    Jagle, A.J.2
  • 30
    • 61349098331 scopus 로고    scopus 로고
    • Jeffrey, c. 1992. relation of judgment, personal involvement, and experience in the audit of bank loans. the accounting review 67 (october): 802-819.
    • Jeffrey, c. 1992. relation of judgment, personal involvement, and experience in the audit of bank loans. the accounting review 67 (october): 802-819.
  • 31
    • 2142760976 scopus 로고    scopus 로고
    • The efficacy of third-party consultation in preventing managerial escalation of commitment: The role of mental representations
    • Spring
    • Kadous, K., and L. M. Sedor. 2004. The efficacy of third-party consultation in preventing managerial escalation of commitment: The role of mental representations. Contemporary Accounting Research 21 (Spring): 55-82.
    • (2004) Contemporary Accounting Research , vol.21 , pp. 55-82
    • Kadous, K.1    Sedor, L.M.2
  • 32
    • 0002861826 scopus 로고
    • Escalation errors and the sunk cost effect: An explanation based on reputation and information asymmetries
    • Spring
    • Kanodia, C, R. Bushman, and J. Dickhaut. 1989. Escalation errors and the sunk cost effect: An explanation based on reputation and information asymmetries. Journal of Accounting Research 27 (Spring): 59-77.
    • (1989) Journal of Accounting Research , vol.27 , pp. 59-77
    • Kanodia, C.1    Bushman, R.2    Dickhaut, J.3
  • 33
    • 71549128988 scopus 로고
    • Understanding ruanway information technology projects: Results from an international research program based on escalation theory
    • Winter
    • Keil, M., R. Mixon, T. Saarinen, and V. Tuuainen. 1994. Understanding ruanway information technology projects: Results from an international research program based on escalation theory. Journal of Management Information Systems 11 (Winter): 65-85.
    • (1994) Journal of Management Information Systems , vol.11 , pp. 65-85
    • Keil, M.1    Mixon, R.2    Saarinen, T.3    Tuuainen, V.4
  • 35
    • 84968137209 scopus 로고
    • Options thinking and platform investments: Investing in opportunity
    • Winter
    • Kogut, B., and N. Kulatilaka. 1994. Options thinking and platform investments: Investing in opportunity. California Management Review 36 (Winter): 52-71.
    • (1994) California Management Review , vol.36 , pp. 52-71
    • Kogut, B.1    Kulatilaka, N.2
  • 36
    • 0032324668 scopus 로고    scopus 로고
    • Challenges to the practical implementation of modeling and valuing real options
    • Lander, D. M., and G. E. Pinches. 1998. Challenges to the practical implementation of modeling and valuing real options. Quarterly Review of Economics 38 (Special Issue): 537-567.
    • (1998) Quarterly Review of Economics , vol.38 , Issue.SPEC. ISSUE , pp. 537-567
    • Lander, D.M.1    Pinches, G.E.2
  • 37
    • 0033249242 scopus 로고    scopus 로고
    • Falling forward: Real options reasoning and entrepreneurial failure
    • January
    • McGrath, R. G. 1999. Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review 24 (January): 13-20.
    • (1999) Academy of Management Review , vol.24 , pp. 13-20
    • McGrath, R.G.1
  • 38
    • 0000171719 scopus 로고    scopus 로고
    • Celebrating the "essential": The impact of performance on the functional favoritism of CEOs in two contexts
    • Miller, D., C. Droge, and S. Vickery. 1997. Celebrating the "essential": The impact of performance on the functional favoritism of CEOs in two contexts. Journal of Management 23 (2): 147-168.
    • (1997) Journal of Management , vol.23 , Issue.2 , pp. 147-168
    • Miller, D.1    Droge, C.2    Vickery, S.3
  • 39
    • 1242265423 scopus 로고    scopus 로고
    • An empirical test of heuristics and biases affecting real option valuation
    • March
    • Miller, K. D., and Z. Shapira. 2004. An empirical test of heuristics and biases affecting real option valuation. Strategic Management Journal 25 (March): 269-284.
    • (2004) Strategic Management Journal , vol.25 , pp. 269-284
    • Miller, K.D.1    Shapira, Z.2
  • 40
    • 49449125071 scopus 로고
    • Determinants of corporate borrowing
    • November
    • Myers, S. C. 1977. Determinants of corporate borrowing. Journal of Financial Economics 5 (November): 147-176.
    • (1977) Journal of Financial Economics , vol.5 , pp. 147-176
    • Myers, S.C.1
  • 42
    • 0031066318 scopus 로고    scopus 로고
    • Considering the best choice: Effects of the salience and accessibility of alternatives on attitude-decision consistency
    • February
    • Posavac, S. S., D. M. Sanbonmatsu, and R. H. Fazio. 1997. Considering the best choice: Effects of the salience and accessibility of alternatives on attitude-decision consistency. Journal of Personality and Social Psychology 72 (February): 253-261.
    • (1997) Journal of Personality and Social Psychology , vol.72 , pp. 253-261
    • Posavac, S.S.1    Sanbonmatsu, D.M.2    Fazio, R.H.3
  • 44
    • 21844499608 scopus 로고
    • Uses, abuses, and alternatives to the net-present-value rule
    • Autumn
    • Ross, S. 1995. Uses, abuses, and alternatives to the net-present-value rule. Financial Management 24 (Autumn): 96-102.
    • (1995) Financial Management , vol.24 , pp. 96-102
    • Ross, S.1
  • 45
    • 0011938001 scopus 로고    scopus 로고
    • The influence of self interest and ethical considerations on managers' evaluation judgments
    • February
    • Rutledge, R. W., and K. E. Karim. 1999. The influence of self interest and ethical considerations on managers' evaluation judgments. Accounting, Organizations and Society 24 (February): 173 184.
    • (1999) Accounting, Organizations and Society , vol.24 , pp. 173-184
    • Rutledge, R.W.1    Karim, K.E.2
  • 47
    • 85047674945 scopus 로고    scopus 로고
    • Psychological antecedents of escalation behavior: Effects of choice, responsibility, and decision consequences
    • December
    • Schoorman, F. D., and P. J. Holahan. 1996. Psychological antecedents of escalation behavior: Effects of choice, responsibility, and decision consequences. The Journal of Applied Psychology 81 (December): 786-794.
    • (1996) The Journal of Applied Psychology , vol.81 , pp. 786-794
    • Schoorman, F.D.1    Holahan, P.J.2
  • 48
    • 2142679804 scopus 로고    scopus 로고
    • Persistence in capital budgeting reinvestment decisions Personal responsibility antecedent and information asymmetry moderator: A note
    • March
    • Schulz, A. K., and M. M. Cheng. 2002. Persistence in capital budgeting reinvestment decisions Personal responsibility antecedent and information asymmetry moderator: A note. Accounting and Finance 42 (March): 73-86.
    • (2002) Accounting and Finance , vol.42 , pp. 73-86
    • Schulz, A.K.1    Cheng, M.M.2
  • 49
    • 0342642164 scopus 로고
    • Knee-deep in the big muddy: A study of escalating commitment to a chosen course of action
    • June
    • Staw, B. M. 1976. Knee-deep in the big muddy: A study of escalating commitment to a chosen course of action. Organizational Behavior and Human Performance 16 (June): 27-44.
    • (1976) Organizational Behavior and Human Performance , vol.16 , pp. 27-44
    • Staw, B.M.1
  • 50
    • 84890749155 scopus 로고
    • Sunk costs in the NBA: Why draft order affects playing time and survival in professional basketball
    • September
    • -, and H. Hoang. 1995. Sunk costs in the NBA: Why draft order affects playing time and survival in professional basketball. Administrative Science Quarterly 40 (September): 474-494.
    • (1995) Administrative Science Quarterly , vol.40 , pp. 474-494
    • Staw, B.M.1    Hoang, H.2
  • 51
    • 61349149763 scopus 로고    scopus 로고
    • -. 1997. The escalation of commitment: An update and appraisal. In Organizational Decision Making, edited by Z., Shapira, 191-215. Cambridge, U.K.: Cambridge University Press.
    • -. 1997. The escalation of commitment: An update and appraisal. In Organizational Decision Making, edited by Z., Shapira, 191-215. Cambridge, U.K.: Cambridge University Press.
  • 53
    • 8644232785 scopus 로고    scopus 로고
    • Will real options take root? Why companies have been slow to adopt the valuation technique
    • July 1
    • Teach, E. 2003. Will real options take root? Why companies have been slow to adopt the valuation technique. CFO Magazine (July 1).
    • (2003) CFO Magazine
    • Teach, E.1
  • 54
    • 33749490556 scopus 로고    scopus 로고
    • Information systems project continuation in escalation situations: A real options model
    • Tiwana, A., M. Keil, and R. G. Fichman. 2006. Information systems project continuation in escalation situations: A real options model. Decision Sciences 37 (3): 357-391.
    • (2006) Decision Sciences , vol.37 , Issue.3 , pp. 357-391
    • Tiwana, A.1    Keil, M.2    Fichman, R.G.3
  • 55
    • 34047133233 scopus 로고    scopus 로고
    • The bounded rationality bias in managerial valuation of real options: Theory and evidence from IT projects
    • -, J. Wang, M. Keil, and P. Ahluwalia. 2007. The bounded rationality bias in managerial valuation of real options: Theory and evidence from IT projects. Decision Sciences 38 (1): 157-181.
    • (2007) Decision Sciences , vol.38 , Issue.1 , pp. 157-181
    • Tiwana, A.1    Keil, M.2    Fichman, R.G.3    Wang, J.4    Keil, M.5    Ahluwalia, P.6
  • 58
    • 0942289771 scopus 로고    scopus 로고
    • Do real options lead to escalation of commitment?
    • January
    • Zardhooki, A. 2004. Do real options lead to escalation of commitment? Academy of Management Review 29 (January): 111-119.
    • (2004) Academy of Management Review , vol.29 , pp. 111-119
    • Zardhooki, A.1


* 이 정보는 Elsevier사의 SCOPUS DB에서 KISTI가 분석하여 추출한 것입니다.