1]: There is no statistically significant difference in Tobin's q ratios between "pre-crisis" and "post-crisis " years.
Pre-crisis period had larger Tobin's q ratios than the post-crisis period.
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).
We conclude that, on average, the marginal and average Tobin's Q ratios differ for firms in the sample.
47 Table 1 Estimated Tobin's Q Ratios and Announcements by Firm Average Q is calculated as the ratio of the market value of the firm to replacement cost.
Our procedure for estimating Tobin's q ratios
for each firm follows the Perfect and Wiles (1994) method:
The difference in the m/b, Tobin's q ratios, and ROA between the two groups is generally consistent with our arguments that outside blockholders monitor managers and that the existence of such institutions affects the performance of ESOP firms differently.
Although Tobin's q ratio is ideal, we can not compute the Tobin's q ratio for many cases due to incomplete data.
We find sufficient data on COMPUSTAT to calculate the m/b ratio for 212 ESOPs, leverage-controlled ROA for 111 ESOPs, and Tobin's q ratio for 119 ESOPs over a five-year period from year t - 1 to year t + 3.
We draw a similar conclusion from changes in Tobin's q ratio and ROA.