Marginal q, Tobin's q, Cash Flow, and Investment

Gugler, Klaus; Mueller, Dennis C.; Yurtoğlu, B. Burçin

doi:10.2307/4135328

Cited by 67 publications

(33 citation statements)

References 29 publications

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“…Surprisingly, related studies such as Gugler et al (2004), Fazzari et al (1988) as well as Gilchrist and Zakrajsek (2007) relate the cash flow including deprecation to the net capital stock. In the course of time, this, ceteris paribus, necessarily leads to a rising cash flow-capital ratio and may thus create distortions.…”

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confidence: 99%

Credit vs. demand constraints: The determinants of US firm-level investment over the business cycles from 1977 to 2011

Schoder¹

2013

The North American Journal of Economics and Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract The paper studies empirically how relative supply and demand conditions on the capital market affected US fi rm-level investment over the business cycles from 1977 to 2011. A dynamic econometric specifi cation of capital accumulation including sales growth, Tobin's q, the cash fl ow-capital ratio and the cost of capital as covariates is fi tted by a rolling window System GMM estimator using quarterly data on publicly traded US corporations in order to obtain time-varying coeffi cients. We fi nd that the investment effects of the variables capturing the demand-side of the capital market, i.e. sales growth and Tobin's q, behave counter-cyclically, whereas this does not hold for the investment effects of supplyside variables such as cash fl ow or the cost of capital. Our results suggest that investment was typically driven by adverse demand rather than supply conditions on the capital market during the most severe recessions. Terms of use: Documents in AbstractThe paper studies empirically how relative supply and demand conditions on the capital market affected US firm-level investment over the business cycles from 1977 to 2011. A dynamic econometric specification of capital accumulation including sales growth, Tobin's q, the cash flow-capital ratio and the cost of capital as covariates is fitted by a rolling window System GMM estimator using quarterly data on publicly traded US corporations in order to obtain time-varying coefficients. We find that the investment effects of the variables capturing the demand-side of the capital market, i.e. sales growth and Tobin's q, behave counter-cyclically, whereas this does not hold for the investment effects of supply-side variables such as cash flow or the cost of capital. Our results suggest that investment was typically driven by adverse demand rather than supply conditions on the capital market during the most severe recessions.

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confidence: 99%

Credit vs. demand constraints: The determinants of US firm-level investment over the business cycles from 1977 to 2011

Schoder¹

2013

The North American Journal of Economics and Finance

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“…A l'instar de Gugler et al (2004), nous mesurons ces opportunités par le ratio Q de Tobin pour notre échantillon de PME cotées. Nous prenons ainsi en considération l'importance de la création de valeur perçue par les actionnaires.…”

Section: Cadre Théorique Le Financement Bancaire Des Pmeunclassified

L’internationalisation des PME affecte-t-elle l’accès au financement bancaire ?

Benkraiem

Miloudi

2014

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Cet article étudie les relations entre l’accès au financement bancaire et un ensemble de variables économiques et financières de PME. Nous mettons spécifiquement l’accent sur le lien entre l’internationalisation des PME et leur capacité à obtenir des crédits. Plusieurs résultats sont à mettre en perspective. En particulier, la taille et la tangibilité des actifs sont positivement reliées à l’endettement bancaire, ce qui montre l’importance des garanties présentées dans l’octroi du financement. En revanche, l’internationalisation est négativement reliée à ce même type d’endettement, ce qui traduit les difficultés de financement des PME lorsqu’elles désirent s’ouvrir aux marchés internationaux.This article studies the relations between the access to bank financing and a set of economic and financial variables of SMEs. We specifically focus on the link between the internationalization of SMEs and their capacity to obtain bank credits. Several results are to be highlighted. In particular, the size and the tangibility of assets are positively related to leverage, which shows the importance of guarantees to access financing. Conversely, the internationalization is negatively related to this same type of debt, which shows the difficulties faced by SMEs when they wish to explore new international markets.Este artículo estudia las relaciones entre el acceso a la financiación bancaria y un conjunto de variables económicas y financieras de PYME. Hacemos hincapié específicamente en el vínculo entre la internacionalización de las PYME y su capacidad para obtener créditos. Varios resultados deben ponerse en perspectiva. En particular, los activos tangibles y su tamaño se conectan positivamente al endeudamiento bancario, lo que muestra la importancia de las garantías presentadas en la concesión de la financiación. En cambio, la internacionalización se conecta negativamente a este mismo tipo de endeudamiento, lo que se traduce en dificultades de financiación de las PYME cuando desean abrirse a los mercados internacionales

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“…Lastly, several previous studies have used Tobin"s Q ratio to identify investment opportunities (Gugler et al, 2004;Blose and Sheih, 1997). This ratio, defined as the ratio between the firm"s market value and accounting value, is used as a measurement of investment opportunities.…”

Section: Theoretical Frameworkmentioning

confidence: 99%