Gugler, Klaus, Mueller, Dennis, Yurtoglu, B. Burcin. 2003. Average q, Marginal q, Cash Flow and Investment. Southern Economic Journal 70 (3): 512-531.

RIS

@ARTICLE{Gugler2003,
title = {Average q, Marginal q, Cash Flow and Investment},
author = {Klaus Gugler and Dennis Mueller and B. Burcin Yurtoglu},
year = {2003},
volume = {70},
number = {3},
language = {EN},
pages = {512-531},
journal = {Southern Economic Journal},
abstract = {Many studies of the determinants of investment use Tobin's q to control for the investment opportunities of a firm. Tobin's q roughly measures the average return on a firm's capital anticipated by the market. More relevant for investment decisions, however, is the marginal return on capital. In this paper we estimate investment and R&D equations using a measure of marginal q. We use marginal q to identify the existence of cash constraints and managerial discretion, and as a separate explanatory variable. For a sample of 560 U.S. firms observed over the 1977-1996 period we present evidence confirming the existence of both cash constraints in some companies and managerial discretion in others.},
}