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We examine whether capital flows more to high Tobin's q industries and find that it flows more to high q industries from 1971 until 1996 but not from 1997 to 2014. This change is due to a decrease in the q-sensitivity of equity funding resulting mostly from the increased q-sensitivity of...
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The aim of this paper is to investigate the issue of R&D investment and the market value of the firm. This idea dating … R&D investment). In the theoretical section of this paper we are describing Tobin's original model, and Abel's (1984 …, in total of 11 panels. Later we test that model by estimating the marginal effects of R&D investment with Tobin's q on a …
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