These attributes were: Tobin's q ratio, intangible assets to total assets ratio (IntanTA), cash flow to sales ratio (CFsales), auditor opinion (AUOP), capital expenditure to property, plant & equipment ratio (CapInt), and advertising expense to sales ratio (AdvSale).
1]: There is no statistically significant difference in Tobin's q ratios between "pre-crisis" and "post-crisis " years.
In this article, we'll look at two additional market valuation tools, Tobin's Q Ratio and Robert Shiller's C.
Tobin's Q Ratio was developed by James Tobin, recipient of the 1981 Nobel Prize in Economic Sciences.
Tobin's Q ratio for company I in year t; (Tobin qit)
Tobin's Q ratio has been proposed as an important technique for the assessment of managers' operations.
firm becoming a target of a foreign company and the Tobin's q ratio.
after adjusting for changes in purchasing power over the life of the debt contract), the numerator of the Tobin's q ratio will be overstated in real terms making it harder to reject the null hypothesis.
Skandia AFS, an insurance company in Stockholm, Sweden, uses a variant of Tobin's Q ratio
to measure the value of ideas.
Although Tobin's q ratio
is ideal, we can not compute the Tobin's q ratio
for many cases due to incomplete data.
We conclude that, on average, the marginal and average Tobin's Q ratios
differ for firms in the sample.
Our procedure for estimating Tobin's q ratios
for each firm follows the Perfect and Wiles (1994) method: