Gugler, Klaus; Mueller, Dennis C.; Yurtoglu, B. Burcin - In: Southern Economic Journal 70 (2004) 3, pp. 512-531
Many studies of the determinants of investment use Tobin’s q to control for the investment opportunities of a firm. Tobin’s q roughly measures the average return on a firm’s capital anticipated by the market. More relevant for investment decisions, however, is the marginal return on...