Baum, Christopher F; Thies, Clifford F - In: Review of Quantitative Finance and Accounting 12 (1999) 1, pp. 35-47
The effects of measurement and specification error on estimates of the Q and cash flow model of investment are investigated. Two sources of error are considered: expensing of R&D expenditures and failing to identify that component of cash flow which relaxes financing constraints. We apply...