Following Peters and Taylor (2017), compute Tobins q as the market value of outstanding equity mktcap plus

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Following Peters and Taylor (2017), compute Tobin’s q as the market value of outstanding equity mktcap plus the book value of debt (dltt + dlc) minus the current assets atc and everything divided by the book value of property, plant and equipment ppegt. What is the correlation between the measures of Tobin’s q? What is the impact on the two-way fixed effects regressions?

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Tidy Finance With R

ISBN: 9781032389349

1st Edition

Authors: Christoph Scheuch, Stefan Voigt, Patrick Weiss

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