The Misuse of Tobin's Q

Bartlett, Robert P.; Partnoy, Frank

doi:10.2139/ssrn.3118020

Cited by 28 publications

(15 citation statements)

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“…They believe that the stock market is rewarding the better‐managed, higher‐performing firms. This is consistent with Bartlett and Partnoy's () assessment that firms with more intangible assets tend to have higher values of Tobin's Q. If we consider higher SCV, better management, and lower supply risk to be intangible assets, it follows that these firms would also have higher market value.…”

Section: Discussionsupporting

confidence: 87%

Does supply chain visibility affect operating performance? Evidence from conflict minerals disclosures

Swift

Guide

Muthulingam

2019

J of Ops Management

130

107

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Firms are increasingly held accountable for their suppliers' transgressions. Consequently, firms need to develop upstream visibility to exercise control over their supply chains. An emerging body of work has recognized the importance of supply chain visibility and has examined it using analytical models, behavioral methods, and case studies. Still, large-sample empirical evidence on the benefits of supply chain visibility remains elusive. We seek to bridge this gap by examining conflict minerals disclosures (mandated by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act) and financial reports to evaluate whether firms with greater visibility into their conflict minerals supply chains achieve improved operating and market performance. We use the data from conflict minerals disclosures (Form SD) to distinguish between firms that have high or low visibility into their conflict minerals sources. Then, we use event study methods to analyze differences in operating and market performance between firms with high visibility and firms with low visibility. We find that firms with high visibility into their conflict minerals supply chains achieve higher profitability than comparable firms with less visibility. In addition, we find that firms with high visibility into their conflict minerals supply chains realize improved sales performance and stock market valuations. Our results are relevant to managers because they show that firms can attain operational and market benefits by improving visibility in their supply chains. K E Y W O R D Sconflict minerals, event study, operating performance, supply chain visibility

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Section: Discussionsupporting

confidence: 87%

Does supply chain visibility affect operating performance? Evidence from conflict minerals disclosures

Swift

Guide

Muthulingam

2019

J of Ops Management

130

107

View full text Add to dashboard Cite

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“…Generally, market-to-book value of equity (ME/BE) is used as replacement for Tobin's Q because data needed to calculate Q is usually not available. However, even though many studies use these market-based measures, the current study does not use them in the models based on the arguments in Bartlett and Partnoy (2018).…”

Section: Data and Variablesmentioning

confidence: 99%

Female board members: the effect of director affiliation

Arioglu

2020

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Purpose This study aims to investigate whether female directors have an effect on company financial performance in a patriarchal emerging country that has a collectivistic culture with a substantial gender equality gap and is characterized with a paternalistic management culture. In addition, it aims to investigate whether the affiliations of female directors matter performance-wise in a setting where the majority of the companies are ultimately controlled by large business groups including families. Design/methodology/approach The current study uses a unique hand-collected data set that covers all non-financial public companies quoted at the Borsa Istanbul between the years 2009 and 2017. To investigate the relationships between the presence and ratio of female directors and company financial performance, the current study uses the pooled ordinary least squares method, as well as the firm-fixed effects method to overcome potential omitted variables problems and various generalized method of moments methods to overcome potential reverse causality problems. Findings The findings of the current study demonstrate that the presence and percentage of female directors both have a positive effect on company financial performance in a cultural setting where the opposite might be expected. They also present evidence suggesting that the effect becomes larger as the level of the independence of female directors becomes greater. Originality/value The current study demonstrates that the presence of female directors on boards has a positive effect on company financial performance, even in a cultural setting that is very different from those of countries where the majority of previous studies on female directors are conducted on. In addition, it demonstrates how company financial performance varies with the level of the affiliation of female directors.

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“…8 See, e.g., Kaplan and Zingales (1997), Erickson and Whited (2000), Gomes (2001), Hennessy (2004), Farre-Mensa and Ljungqvist (2016), Peters and Taylor (2017), and Bartlett and Partnoy (2018), among others.…”

Section: Introductionmentioning

confidence: 99%