SME financial aid opportunities: The role of Bank investment evaluations from a real options lens
: a qualitative study on how banks evaluate investment opportunities based on a real option approach

  • Johanna Hagberg
  • Marigona Resteljica

    Student thesis: Master, one year


    This study aims to explore how banks evaluate investment decisions towards SMEs, through a real option approach. After analyzing 9 interviews with business advisors from four different banks, illustrations show that banks indeed use a real option way of thinking, without being aware of it as well as put more weight in certain factors namely the repayment ability. Moreover, the relationship factor shows an interesting relevance during investment evaluation towards SMEs, as better relationships lead to lower demands on factors of evaluation. In brief, the study contributes to the theory of real options as well as of practical essentiality to banks and SMEs.

    Date of Award2014-Sep-15
    Original languageEnglish
    SupervisorTimurs Umans (Supervisor), Yuliya Ponomareva (Supervisor) & Sven-Olof Yrjö Collin (Examiner)

    Educational program

    • Degree of Bachelor of Science in Business and Economics

    University credits

    • 15 HE credits

    Swedish Standard Keywords

    • Business Administration (50202)


    • bank evaluation
    • smes and banks
    • investment and real options
    • smes borrowing.

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