On the measurement of Tobin's q

The Underinvestment Problem and Corporate Derivatives Use

“…We calculate Tobin's q using the methodology in Lewellen and Badrinath (1997). 6 Due to the intensive historic data requirements for implementing the Lewellen and Badrinath (1997) procedure, we reduce the numbers of user and non-user firms appearing in the full-sample tests involving Tobin'q to 153 and 100, respectively.…”

“…We calculate Tobin's q using the methodology in Lewellen and Badrinath (1997). 6 Due to the intensive historic data requirements for implementing the Lewellen and Badrinath (1997) procedure, we reduce the numbers of user and non-user firms appearing in the full-sample tests involving Tobin'q to 153 and 100, respectively. Also, we did not conduct the restricted sample tests reported in Table 7 A fourth measure we use is a firm's price-to-earnings ratio (P/E), which we measure as the firm's 1995 yearend price divided by its 1995 earnings.…”

Three Essays on Growth Econometrics

“…In our work, the issues pointed out by Lewellen and Badrinath (1997) are less relevant because Chung and Pruitt (1994) have shown that the book value of the firm is an adequate approximation for the replacement value of the firm. Nowadays, the literature has largely abandoned the inventory valuation method.…”

“…20 Lewellen and Badrinath (1997) show that results of investment-Q models are sensitive to the precise way in which inventory valuation methods are used to construct replacement values of the firm (the denominator of the canonical empirical measure of Q). In our work, the issues pointed out by Lewellen and Badrinath (1997) are less relevant because Chung and Pruitt (1994) have shown that the book value of the firm is an adequate approximation for the replacement value of the firm.…”

Efeitos Da Vinculação De Conselheiros Ao Acordo De Acionistas No Valor Da Firma

“…Essa variável toma como base a soma do valor de mercado da empresa e de sua dívida de curto e longo prazos em relação ao valor contábil dos ativos (Chung & Pruitt, 1994). Entretanto, essa medida é utilizada para estudos de empresas não financeiras nas quais se pode comparar essas medidas (Lee & Tompkins, 1999;Lewellen & Badrinath, 1997). Considerando que nossa amostra é composta tanto por empresas financeiras como não financeiras, optou-se como medida de valor da empresa a razão market-to-book (P/B), que mede a razão entre valor de mercado da empresa e seu valor patrimonial (Fama & French, 1992).…”