Borgonovo, Gatti e Peccati, What Drives Value Creation in Investment Projects?

Borgonovo, Gatti e Peccati hanno pubblicato sullo "European Journal of Operational Research"

Emanuele Borgonovo, Lorenzo Peccati (entrambi Dipartimento di Scienze delle Decisioni ed ELEUSI) e Stefano Gatti (Dipartimento di Finanza e CAREFIN) hanno pubblicato What Drives Value Creation in Investment Projects? An Application of Sensitivity Analysis to Project Finance Transactions in the European Journal of Operational Research, Volume 205, Issue 1, August 2010, Pages 227-236.

Abstract: Evaluating the economic attractiveness of large projects often requires the development of large and complex financial models. Model complexity can prevent management from obtaining crucial information, with the risk of a suboptimal exploitation of the modelling efforts. We propose a methodology based on the so-called “differential importance measure (D)” to enhance the managerial insights obtained from financial models. We illustrate our methodology by applying it to a project finance case study. We show that the additivity property of D grants analysts and managers full flexibility in combining parameters into any group and at the desired aggregation level. We analyze investment criteria related to both the investors’s and lenders’ perspectives. Results indicate that exogenous factors affect investors (sponsors and lenders) in different ways, whether exogenous variables are considered individually or by groups.