Financial management, 1999-04, Vol.28 (1), p.20-31
1999
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Details
- Autor(en) / Beteiligte
- Titel
- A Modified Version of the Lewellen and Badrinath Measure of Tobin's Q
- Ist Teil von
- Financial management, 1999-04, Vol.28 (1), p.20-31
- Ort / Verlag
- Albany, N.Y: Financial Management Association
- Erscheinungsjahr
- 1999
- Quelle
- Business Source Ultimate
- Beschreibungen/Notizen
- Lewellen and Badrinath (1997) propose a superior method of measuring Tobin's Q. Unfortunately, their method is prone to a high percentage of missing observations and results in selecting samples of larger and more mature firms with lower Q statistics. We propose a slight modification that preserves the appeal of their method, yet almost doubles the sample size, avoids sampling problems, and is statistically indistinguishable from their Q measure. In addition, we clarify a step in the Lewellen and Badrinath Q calculation, which was inadvertently omitted in their explanation, and, if left undone, can result in downward-biased measures of Q.
- Sprache
- Englisch
- Identifikatoren
- ISSN: 0046-3892eISSN: 1755-053XDOI: 10.2307/3666114Titel-ID: cdi_proquest_journals_208179699
- Format
- –
- Schlagworte
- Algorithms, Book value, Cost estimates, FIFO, Financial performance, Financial ratios, Fixed assets, Gross investment, Investment schedule, Investment value, Investments, LIFO, Preferred stock, Proxy reporting, Proxy statements, Public investments, Replacement value, Research methodology, Sampling techniques, Statistical analysis, Statistical median, Statistics, Studies