“…In accordance with previous studies (Daske, Hail, Leuz, & Verdi, 2008;Black, Jang, & Kim, 2006;Lang & Stulz, 1994;Morck, Shleifer, & Vishny, 1988;Fisher & McGowan, 1983), we employed TOBINSQ as a proxy for firm value in order to capture expected changes in future cash flow. From a review of the literature (Lang, Lins, & Maffett, 2012;Abel & Eberly, 2011;Eltayeb, 2011;Black et al, 2006;DeJong, Mertens, & Wasley, 2005;Chung, Wright, & Kedia, 2003;Allayannis & Weston, 2001), this study includes four control variables from a review of the literature to control for the financial condition of a company: ROA, GROWTH, DE, and FC. We expected a positive association between firm value and financial performance with the exception of leverage (DE).…”