1986
DOI: 10.2307/3665778
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Contributions of Diversification, Promotion, and R&D to the Value of Multiproduct Firms: A Tobin's q Approach

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Cited by 108 publications
(65 citation statements)
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“…profits. Jose et al (1986) set forth several hypotheses about possible benefits of increased advertising and R&D expenditures, such as creating barriers to entry, differentiating products, and decreasing price elasticity of demand, thus leading to more shareholder value.…”
Section: Foundational Researchmentioning
confidence: 99%
See 1 more Smart Citation
“…profits. Jose et al (1986) set forth several hypotheses about possible benefits of increased advertising and R&D expenditures, such as creating barriers to entry, differentiating products, and decreasing price elasticity of demand, thus leading to more shareholder value.…”
Section: Foundational Researchmentioning
confidence: 99%
“…He reported significant positive relationships between the two intensity variables and market-to-book ratio. Jose et al (1986) constructed variables representing relative Tobin's q, average share-weighted advertising expenditures, and share-weighted R&D expenditures (expenditures weighted by sales in business j relative to total firm sales). After analyzing the relationships among the constructed variables, the authors' general conclusion was that "higher firm level promotional and R&D intensity significantly reduced value" (p. 39, italics in original).…”
Section: Foundational Researchmentioning
confidence: 99%
“…Tobin's Q plays an important role in explaining diverse corporate financial phenomenon such as investment strategies 9 contribution to firm value (Jose et al, 1986), common equity structure and its relationship with corporate value (McConnell & Servaes, 1990), acquiring firm investment opportunities that lead to the different method of payments in corporate acquisitions (Martin, 1996) and time series patterns of excellence (Jose, Lancaster, & Stevens, 2011) . Despite Tobin's Q leading role in several corporate financial areas, managers do not commonly use this powerful tool in practical financial decision analysis.…”
Section: Tobin's Q (Tbq)mentioning
confidence: 99%
“…A variável Q-Tobin, operacionalmente defi nida como o quociente entre o valor de mercado de uma empresa e o valor de reposição de seus ativos (TOBIN, 1969), foi, inicialmente, adotada para explicar e fundamentar decisões de investimento (JOSE, 1986), pois, quando ela superasse a unidade, as empresas possuiriam um incentivo para investir, uma vez que o novo capital investido tenderia a exceder o seu custo (LINDENBERG et al, 1981). A utilização dessa variável para medir a atratividade dos investimentos, induziu a sua utilização para medir os lucros extraordinários atribuíveis a monopólios industriais ou a fatores específi cos das empresas individuais (SMIRLOCK et al, 1984;PETERAF, 1993, VILLALONGA, 2004.…”
Section: Introductionunclassified