Tobin’s Q,Ratio of Tradable Shares and Firm Value
Tobins q is widely used to measure the value of the firm, thus explaining various corporate phenomena. In China, however, the coexistence of tradable and non-tradable shares makes an accurate estimate of Tobin’s q very difficult. When respectively using net assets per share, 0.18 times the price of tradable shares and 0.336 times the price of tradable shares as the price of non-tradable shares, the relationship of Tobin’s q and ratio of tradable shares is statistically significantly positive. When using the price of tradable shares as the price of nontradable shares, the relationship of Tobin’s q and ratio of tradable shares is statistically significantly negative. This shows the method that China’s scholars commonly used to measure Tobin’s q may lead the wrong outcomes. This suggests in the regression analysis that the corporate value is the dependent variable, the ratio of tradable shares as an independent variable should be included in the regression equation.
Tobin’s q ratio of tradable shares firm value
SUN Weifeng
College of Economics, Zhejiang University, Hangzhou 310027, China
国际会议
大连
英文
695-699
2012-07-07（万方平台首次上网日期，不代表论文的发表时间）