Assessment of rapid growth ventures, an extension of Schwartz and Moon model

Zvika Afik, Eran Zwilling

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

It is a challenge to incorporate randomness into financial projections that are at the core of new venture assessment. We present a model based on Schwartz and Moon () and apply it to a real firm data. We find that our 10-year projections conform to the actual realized values. The model allows addressing crucial questions regarding the venture survival, its extreme potential outcomes, and its sensitivity to its parameters. It facilitates identifying risk drivers and assessing potential remedies. To our knowledge, we are the first to propose such a comprehensive stochastic model for risky ventures' simulation and analysis.

Original languageEnglish
Pages (from-to)107-114
Number of pages8
JournalManagerial and Decision Economics
Volume39
Issue number1
DOIs
StatePublished - Jan 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
Copyright © 2017 John Wiley & Sons, Ltd.

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