Chung, Kee H; Wright, Peter - In: Review of Quantitative Finance and Accounting 11 (1998) 3, pp. 293-310
In this paper, we show that Tobin's q has a significant predictive power in explaining valuation consequences of major corporate policy variables. Our empirical results reveal that, depending upon whether a firm is overinvesting or underinvesting, financial markets respond quite differently to...