J.T.J. (Han) Smit

Full Professor
Erasmus School of Economics
Erasmus University Rotterdam
Member ERIM
Field: Finance & Accounting
Affiliated since 1999

Han Smit is a corporate professor of Finance at the Department of Business Economics, Erasmus School of Economics (ESE).

His research in the areas of private equity, real options valuation, competition and strategy has been widely published in leading academic and practitioner journals. He is co-author of a book Strategic Investment: Real Options and Games published by Princeton University Press.

Professor Smit has been a visiting fellow at Harvard University, Columbia University, UC at Berkeley, Boston University, and fellow at the Netherlands Institute of Arts and Sciences (NIAS).

  • Smit, J.T.J. & Moraitis, T. (2015). Playing at Serial Acquisitions. Princeton: Princeton University Press. http://press.princeton.edu/titles/10333.html
  • Smit, J.T.J. & Trigeorgis, L.T. (2004). Strategic Investment: Real Options and Games. Princeton: Princeton University Press. http://repub.eur.nl/res/pub/12234/
  • Smit, J.T.J. (2002). The economics of private equity (Erasmus Research Institute of Management, EIA-12-F&A). Rotterdam: ERIM Inaugural Addresses Research in Management Series.
  • Smit, J.T.J. & Trigeorgis, L.T. (2003). Real options: principles of valuation and strategy. In J.A. McCahery & L. Renneboog (Eds.), Venture capital contracting and the valuation of high technology firms (pp. 227-250). New York: Oxford University Press Inc..
  • Smit, J.T.J. & Trigeorgis, L.T. (2001). Flexibility and commitment in strategic investments. In E.S. Schwartz & L. Trigeorgis (Eds.), Real options and investment under uncertainty: classical readings and recent contributions (pp. 451-498). Cambridge: MIT Press.
  • Smit, J.T.J. & Ankum, L.A. (2000). A real option and a game theoretic approach to corporate investment strategy under competition. In S. Grenadier Risk (Ed.), Game choices the intersection of real options game theory (pp. 21-40). London: Risk Books.
  • Smit, J.T.J. & Ankum, L.A. (2000). A Real Options and Game-Theoretic Approach to Corporate Investment Strategy under Competition. In Steven Grenadier (Ed.), Game Choices: The Intersection of Real Options and Game Theory (Risk Books) (pp. 21-40). Londen: S.R. Grenadier.
  • Smit, J.T.J. & Trigeorgis, L. (2000). Growth options, competition and strategy: an answer to the market valuation puzzle? In L. Trigeorgis (Ed.), Real options and business strategy applications to decision making (pp. 21-39). London: Risk Books.
  • Smit, J.T.J. (1999). The valuation of offshore concessions in the Netherlands. In A. Micalizzi & L. Trigeorgis (Eds.), Real options (pp. 179-217). Milan: Egea Sda Bocconi.
  • Smit, J.T.J. & Trigeorgis, L. (1999). Flexibility, strategic options and dynamic competition in technology industries. In A. Micalizzi & L. Trigeorgis (Eds.), Real options (pp. 31-67). Milan: Egea Sda Bocconi.
  • Smit, J.T.J. (1999). Flexibility, Strategic Options and Dynamic Competitions in Technology Industries. In Real Options. Milaan: Egea Sda Bocconi.
  • Smit, J.T.J. (1999). The Valuation of Offshore Concessions in the Netherlands. In A Micalizzi & L Trigeorgis (Eds.), Real Options (pp. 3-3.5). Milaan: Egea Sda Bocconi.
  • Smit, J.T.J. & Trigeorgis, L.T. (1999). Flexibility, strategic options and dynamic competition in technology industries. In A. Micalizzi & L. Trigeorgis (Eds.), Real options (pp. 31-66). Milan: Egea Sda Bocconi.
  • Smit, J.T.J. (1994). The flexibility value of strategic investments under competition. In @ Gosh (Ed.), New directions in finance. @: Omega Scientific.
  • Trigeorgis, L.T., Brosch, R. & Smit, J.T.J. (2007, September 15). The Journal report: Business Insight Strategy: Stay Loose. The Wall Street Journal, pp. R4.
  • Smit, J.T.J. (periode: 2007 t/m 2007). Expert in hoorzitting Private Equity Functie bij : Tweede Kamer.
  • Maeseneire, W. De, Smit, J.T.J. & Berg, W.A. van den (2005). De markt voor Private Equity. Finance en Control, April, 15-17.
Dyaran Bansraj

The Changing Environment of Private Equity

Nishad Matawlie

Behavioural Real Options

Joris Kil

Acquisitions Through a Behavioural and Real Options Lens

  • Role: Promotor
  • PhD Candidate: Joris Kil
  • Time frame: 2009 - 2013
Wouter de Maeseneire

Essays on Firm Valuation and Value Appropriation

Corporate Acquisition Behaviour

Consistent with neo-classical rational theory, prior studies show that mergers are driven by rational expectations of growth options, synergies or reallocation of assets in a response to industry shocks. The rational view includes real options models, (e.g., Smit and Trigeorgis 2004) for valuable growth opportunities.

Contrary to rational theory, behavioral views offer alternative explanations for the drivers of mergers and acquisitions (Baker et al. 2007). First, decision makers - the bidders’ CEOs and management teams - may act irrational. CEOs may suffer from overconfidence and over-optimism (Roll 1986), and managers may use their discretion to overinvest (Malmendier and Tate 2005). Second, financial market overvaluation may drive mergers.

This proposal attempts to extend the boundaries of real options analysis to environments where rivals have biases in their decision-making (as in Smit and Moraitis 2009; Smit and Lovallo 2014). In other words rationally anticipate on an irrational environment. This proposal contributes to this field by developing at least 3 papers of publishable quality on acquisitions; more specifically; merger waves and  behavioural real options theory.

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2014
June
06
ERIM Research Workshop
2011
April
04
2010
April
12

Address

Visiting address

Office: Tinbergen Building H14-17
Burgemeester Oudlaan 50
3062 PA Rotterdam

Postal address

Postbus 1738
3000 DR Rotterdam
Netherlands

Work in progress

Smit, J.T.J., Moraitis, T. & Lovallo, D. (2015). Valuation with Behavioral Option Games.
Smit, J.T.J. & Trigeorgis, L. (2015). Strategic Joint Ventures.

Latest publication

Smit, J.T.J., Pennings, E. & Bekkum, S. van (2017). Real Options and Institutions. Journal of International Business Studies.