Real Options Adoption in Capital Budgeting: A Highlight of Recent Literature

This paper presents a literature review of recent empirical surveys on capital budgeting methods. The focus lies on the investigation of Real Options’ adoption for capital budgeting as this is recorded to relevant surveys. The studies include a wide range of questionnaires and examine various aspects of capital budgeting, resulting in findings not always comparable to each other. Although this poses a methodological issue, as surveys results cannot be compared in a quantitative way but only qualitative, however, these studies reveal the adoption trend of real options in various settings among different countries and businesses. A preliminary background is presented initially and next the surveys are presented with focus on the capital budgeting methods utilized