search query: @author Chung, K. / total: 5
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| Author: | Chung, K. Wright, P. |
| Title: | Corporate policy and market value: a q-theory approach |
| Journal: | Review of Quantitative Finance and Accounting
1998 : NOV, VOL. 11:3, p. 293-310 |
| Index terms: | FINANCE ACCOUNTING CORPORATE STRATEGY |
| Language: | eng |
| Abstract: | In this paper, the authors show that Tobin's q has a significant predictive power in explaining valuation consequences of major corporate policy variables. The empirical results reveal that, depending upon whether a firm is overinvesting or underinvesting, financial markets respond quite differently to its capital structure, displayed payout, financial slack, and R&D decisions. Overall, the empirical results suggest that both high debt ratios and greater payouts are favourably viewed by the market when firms are overinvesting. |
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