The Evolution of Foreign Bank’s Entry into China from the Aspect of Real Option


  •  Shujuan Ding    

Abstract

According to real option theory, the ability to obtain investment opportunity, the current cash flow and the uncertainty may affect the investment timing. This article analyzes the evolution of foreign banks entry into China according to real option. China’s authority can defer or accelerate the foreign banks’ expansion through its influence on investment opportunity, current cash flow, uncertainty faced by foreign banks.


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