Estimating Tobin’s Q for Listed Firms in Korea (1980-2005): Comparing Alternative Approaches and an Experiment with Investment Functions

• 발행기관: 서울대학교 경제연구소
• 저자명: Ji Youn Kim Jooyoung Kwak Keun Lee
• 간행물 정보: 『Seoul Journal of Economics』Seoul Journal of Economics Volume 28 No.1, 1~29쪽, 전체 28쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2015.03.30

영문 초록

Tobin’s Q is the most common measurement of firm value and performance. However, estimating Tobin’s Q accurately is not easy. Researchers have used book values of debts or assets rather than the market values. We estimate Tobin’s Q for listed firms in Korea from 1980 to 2005 based on replacement costs of assets as well as market values of debts and common and preferred stocks. We com- pare the estimates using the modified annual average depreciation rates and economic depreciation rates. In sum, we present and compare four alternative series of Tobin’s Q measures. We then estimate investment functions with alternative Tobin’s Q values as regressors to compare the reliability of alternative estimates. We find that the simple measure of using book values of both debts and assets is the most unreliable.

목차

Abstract

Ⅰ. Introduction

Ⅱ. Methodological Issues and Data

Ⅲ. Alternative Estimates of the Values of Listed Firms in Korea

Ⅳ. Experiment on Investment Function Estimation Using All Four Methods

Ⅴ. Summary and Concluding Remarks

References

키워드

Tobin’s Q Firm value Replacement costs Investment function Korean firms Business groups