17,497 research outputs found
Tobinâs q and intangible assets
In a recent paper Laitner & Stolyarov (2003) assert that measured Tobinâs q has usually been well above 1, and use this to back up their conclusion that there are signiïŹcant quantities of unrecorded intangible assets. This key feature of q turns out however to be entirely due to errors and omissions in the authorsâ calculations. The corrected q series turns out to be usually well below unity
Accruals, Cash-Flows and Tobinâs q : An Investment Perspective on Firm Accruals
Following Zhang (Accounting Review, 2007) we cast firm accruals in terms of short-term investment. Since many studies consider accruals as a smoothed measure of cash flows, we first adopt Zhang specification and augment the standard Jones model with a cash-flow variable. Second, if accruals are indeed a form of short-term investment they should also be influenced by firmâs performance as measured by Tobinâs q. Consequently we propose a new version of the accrual model including a proxy for Tobinâs q. Given that accounting data and Tobinâs q are generally measured with errors, we also introduce a new estimation method based on a modified version of the Hausman artificial regression, featuring an optimal weighting matrix composed of higher moments instrumental variable estimators. Our results suggest that all the key parameters of the accrual models are indeed systematically biased with measurement errors. More importantly, our findings largely qualify Zhangâs conjecture on accruals, as both cash-flows and Tobinâs q are found strongly significant regressors of firm accruals. Relatedly we find that the Tobinâs q augmented model better isolate discretionary accruals so that the residuals of the equation are particularly well-suited to forecast stock returns.Discretionary accruals; Earnings management; Investment; Measurement errors; Higher moments; Instrumental variable estimators.
Multinational Enterprises and TobinÂŽs q: The Implications for Foreign Direct Investment
This paper constructs a theoretical model of investment decision abroad supporting the idea that the Multinational Enterprisesâ internalization decision is influenced by the capital installation cost. This modification alters MNEâs investment behavior. Using the idea that capital mobility across countries is associated with the capital installation cost then the firmâs maximization problem may also incorporate the Tobinâs q in a modified fashion.Multinational Enterprises, Foreign Direct Investment, Tobinâs q.
Understanding Labour Market Frictions: A Tobinâs Q Approach
Labour market friction is viewed as the Tobinâs Q of an employed worker as opposed to the position of the Beveridge curve. This Tobinâs Q is inversely proportional to the average quality of the match between employers and workers. Based on this measure, I find that the labour market friction behaves procyclically in the US, which is indicative of the fact that firms compromise on the quality of the skill match during an expansion.
Liquidity when it matters : QE and Tobinâs q
When financial markets freeze in fear, borrowing costs for solvent governments may fall towards zero in a flight to quality â but credit-worthy private borrowers can be
starved of external funding. In Kiyotaki and Moore (2008), where liquidity crisis is captured by the effective rationing of private credit, tightening credit constraints have
direct effects on investment. If prices are sticky, the effects on aggregate demand can be pronounced â as reported by FRBNY for the US economy using a calibrated
DSGE-style framework modified to include such frictions.
In such an environment, two factors stand out. First the recycling of credit flows by central banks can dramatically ease credit-rationing faced by private investors: this is
the rationale for Quantitative Easing. Second, revenue-neutral fiscal transfers aimed at would-be investors can have similar effects. We show these features in a stripped- down macro model of inter-temporal optimisation subject to credit constraints
Ownership Strucure ad the Performance of Belgian Listed Firms
In this study we investigate empirically the relationship between ownership structure of Belgian listed firms, and their performance measured by Tobinâs Q. We focus on the management and the largest shareholders equity ownership. We use first a cross-sectional estimation from 1991 to 1996. Second, we use panel data estimation to control whether the results found cross-sectionally are not due to unobserved firm heteroeneity. The use of panel data confirms the results obtained cross-sectionally for managerial ownership, that is, the relationship between the fraction of equities held by managers and Tobinâs Q is negative. However, panel data results for the relationship between largest sharholders equities ownership and Tobinâs Q become positive, while it is negative cross-sectionally. These results indicate that there is firm heterogeneity which is not captured in the cross-section estimation.Corporate governance, managerial ownership,largest shareholders ownership,firm performance,TobinâsQ,cross-sectional models,panel data
Understanding Labour Market Frictions: A Tobinâs Q Approach
Labour market friction is viewed as the Tobinâs Q of an employed worker as opposed to the position of the Beveridge curve. This Tobinâs Q is inversely proportional to the average quality of the match between employers and workers. Based on this measure, I find that the labour market friction has a procyclical trend in the US, which is indicative of the fact that firms compromise on the quality of the skill match during an expansion.Intangible Capital, Skill matching, Human capital
Board Characteristics and Firm Performance: Evidence from Bursa Malaysia Ace Market
Corporate board is one of the most important corporate governance mechanisms that monitor and advise management in carrying responsibilities to protect shareholder interests. However, the relationship between board of directors and firm performance was still much debated. This study was carried out in order to seek the relationship between board characteristics and firm performance in companies listed on ACE Market at Bursa Malaysia. The data for a year; 2011 for 89 companies was collected from the annual report and the Data Stream. The dependent variables were Tobinâs q and return on assets (ROA) while the independent variables were board size, CEO ownership, independent directors, firm size, and firm age. The result of multiple regression model and correlation showed that board size has a negative relationship with Tobinâs Q but a positive relationship with the ROA. CEO ownership shows a negative relationship with Tobinâs Q and positive relationship with ROA. Director independence has negative relationships with both Tobinâs Q and ROA. Results for the firm size show a negative relationship with Tobinâs Q and a positive one with ROA while firm age indicate positive relationships for both Tobinâs Q and ROA. Of the independent variables, only firm size has a significant relationship with both Tobinâs Q and ROA while CEO ownership shows a significant relationship with ROA
Debt maturity structure of low and high Tobin's Q firms
This study examines the effects of growth in influencing debt maturity structure of Malaysian companies. The result shows that growth firms with high Tobinâs Q are indifferent between short-term and long-term debt financing. However, the relationship between growth and debt maturity is negatively related for firms with low Tobinâs Q. Therefore, this implies that growth firms with high Tobinâs Q do not make use of debt maturity structure to mitigate the agency cost of debt caused by underinvestment problem, while growth firms with low Tobinâs Q maintain higher levels of short-term debt, but lower levels of long-term debt to mitigate agency cost of equity caused by overinvestment proble
The Impact of Capital Structure Towards Firm Performance Moderated by Corporate Governance in LQ-45 Company in BEI at 2013-2018
This researchâs goal is to analyze the impact of capital structure to firm financial performance moderated by corporate governance. There are several past research which showing different results, and there are some developments that used moder-ating variable in the research. This research uses quantitative approach with multi-ple linear regression. This research uses non-financial firms in LQ-45 which regis-tered in BEI within 2013-2018 as sample. This research shows that short-term debt to total asset negatively affects financial performance (ROA, ROE, and Tobinâs Q). Long-term debt to total asset doesnât affect ROA, but it possitively affects ROE and Tobinâs Q. The number of BOD doesnât moderate the impact of short-term debt to total asset on ROA and ROE. But, the number of BOD moderates the impact of short-term debt to total asset on Tobinâs Q and it moderates the impact of long-term debt to total asset on financial performance (ROA, ROE, and Tobinâs Q). The num-ber of BOC moderates the impact of short-term debt to total asset on financial per-formance (ROA, ROE, and Tobinâs Q). But, number of BOC doesnât moderate long-term debt to total asset to financial performance (ROA, ROE, and Tobinâs Q)
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