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The Market Premium For The Option To Close: Evidence From Australian Gold Mining Firms, Simone Kelly Aug 2004

The Market Premium For The Option To Close: Evidence From Australian Gold Mining Firms, Simone Kelly

Simone Kelly

This paper assesses whether the market valuation of gold mining firms contain a premium for the option to close. Tests of whether observed market values incorporate operating flexibility is central to our understanding of the processes that drive market values and has implications for the relevance and suitability of known theoretical pricing frameworks. This paper assesses the relevancy of the option to close for mining firm valuation. This is achieved by examining 41 Australian gold mining firms listed on the Australian Stock Exchange from 1987 to 1994 that are actively engaged in gold mining extraction and production. A pooled cross-sectional …


Model Development Techniques And Evaluation Methods For Prediction And Classification Of Consumer Risk In The Credit Industry, Jennifer Priestley, Satish Nargundkar Dec 2003

Model Development Techniques And Evaluation Methods For Prediction And Classification Of Consumer Risk In The Credit Industry, Jennifer Priestley, Satish Nargundkar

Jennifer L. Priestley

In this chapter, we examine and compare the most prevalent modeling techniques in the credit industry, Linear Discriminant Analysis, Logistic Analysis and the emerging technique of Neural Network modeling. K-S Tests and Classification Rates are typically used in the industry to measure the success in predictive classification. We examine those two methods and a third, ROC Curves, to determine if the method of evaluation has an influence on the perceived performance of the modeling technique. We found that each modeling technique has its own strengths, and a determination of the “best” depends upon the evaluation method utilized and the costs …