PhD viva: Raisa Pérez Vas (Universidade de Vigo) – ‘Real options and sustainable economy: application to the Galician aquaculture sector’

ABSTRACT: This doctoral thesis is framed within the field of financial economics, specifically in the field of company valuation. Current market conditions, where uncertainty plays a fundamental role, mean that the decision-making framework requires an approach that takes into account management flexibility. For this reason, the objective of this thesis is to deepen in the area of company valuation using the Real Options methodology, particularly in the Galician aquaculture sector. In order to achieve this objective, two case studies linked to this sector have been developed in this thesis. On the one hand, the trend towards market concentration of turbot farming companies, driven by the regulatory framework in which they operate, has led to an assessment of an option to abandon one of the companies with the smallest market share. On the other hand, the production of seaweed for human consumption is a booming sector. This situation, motivated by changes in the consumption habits of the human diet, encourages the creation and expansion of companies of this type. Therefore, the feasibility of expansion of a Galician company operating in this sector is studied. The results obtained in this thesis provide a framework where flexibility has been incorporated in the valuation. In the case study of the turbot farming company, it is concluded that the option of leaving the market is a valid option. On the other hand, the valuation performed on the seaweed production company confers that the expansion option causes an increase in the company’s valuation.