Studies over several decades demonstrate that international assignments (IAs) are implemented for a variety of reasons and yet their total organizational value is generally not assessed nor theoretically understood. We suggest new theoretical approach needed in order to understand the IAs more fully. Using data from financial services sector we apply real options theory identify two – home host...

* We are grateful for helpful comments from Salih Neftci. The comments of an anonymous referee were enormously beneficial. We are grateful for support from the Schweger Fund. Remaining errors are our own.