scholarly journals Tobin’s Q as an Indicator of Firm Performance: Empirical Evidence from Manufacturing Sector Firms of Pakistan

2021 ◽  
Vol IX (Issue 1) ◽  
pp. 425-441
Author(s):  
Maryam Ishaq ◽  
Yasir Islam ◽  
Ghulam Ghouse
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Manufacturing Sector ◽  
Tobin’S Q ◽  
Tobin's Q

scholarly journals The Influence of Founder Status on Firm Performance: Empirical Evidence from Canadian IPO Firms

2016 ◽  
Vol 8 (11) ◽  
pp. 134 ◽  
Author(s):  
Saif Ullah ◽  
Dan Zhang
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Firm Survival ◽  
Negative Influence ◽  
Performance Measure ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Survival Status ◽  
Income Stream

<p>This study compares performance for founder-managed firms and professional-managed firms by analyzing 138 Canadian IPO firms that went public from 2004 to 2013. In this paper, we measure firm performance in two ways: Tobin’s Q and ROA are used to measure a firm’s financial performance, while firm survival status is used as a supplementary performance measure. We find that founder-managed firms underperform and underlive their counterparts when firm performance is measured by Tobin’s Q and survival status. Founder status is proved to be unrelated to ROA. The negative influence of founder status can be explained by the relevant transaction hypothesis, which states that founder-managers may act for the controlling family and are more concerned with the associated private income stream than with maximizing the value of the firm.</p>

Impact of CEO Overconfidence on Firm Performance: An Evidence from S&P BSE 200

2019 ◽  
Vol 23 (3) ◽  
pp. 234-243
Author(s):  
Hardeep Singh Mundi ◽  
Parmjit Kaur
Keyword(s):  
Firm Performance ◽  
Superior Performance ◽  
Annual Reports ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Full Sample ◽  
Forecasting Error ◽  
Research Article ◽  
The Impact

The current research article considers the impact of CEO overconfidence on firm performance for S&P BSE 200 firms. The CEO overconfidence is measured using revealed beliefs (holder 67, long holder and net buyer), press coverage and forecasting error proxies of CEO overconfidence. CEO Overconfidence measures are constructed as per the methodology of Malmendier and Tate (2005b, 2008). Firm performance is measured using Tobin’s Q and return on assets. The data are collected from the Centre for Monitoring Indian Economy (CMIE) prowess, S&P Capital IQ and the annual reports of the sample firms over a period of 15 years starting from 1 April 2000 to 31 March 2015. Regression results for each of the proxy of CEO overconfidence with the proxies of firm performance indicate that large Indian firms with overconfident CEOs enjoy a higher return on assets and Tobin’s Q as compared to the full sample firms. Overconfident CEOs consider themselves better-than-average, are involved with over-investment and show superior performance for the firm. The overconfident CEOs increase firm performance by following optimal levels of investments in the firm.

scholarly journals The relationship of capital structure decisions with firm performance: A study of the engineering sector of Pakistan

2012 ◽  
Vol 2 (1) ◽  
pp. 245 ◽  
Author(s):  
Abdul Ghafoor Khan
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Negative Relationship ◽  
Engineering Industry ◽  
Tobin’S Q ◽  
Financial Leverage ◽  
Short Term ◽  
Tobin's Q ◽  
Relationship Of ◽  
The Relationship

Purpose: The purpose of this study is to find the relationship of capital structure decision with the performance of the firms in the developing market economies like Pakistan.Methodology: Pooled Ordinary Least Square regression was applied to 36 engineering sector firms in Pakistani market listed on the Karachi Stock Exchange (KSE) during the period 2003-2009.Findings: The results show that financial leverage measured by short term debt to total assets (STDTA) and total debt to total assets (TDTA) has a significantly negative relationship with the firm performance measured by Return on Assets (ROA), Gross Profit Margin (GM) and Tobin’s Q. The relationship between financial leverage and firm performance measured by the return on equity (ROE) is negative but insignificant. Asset size has an insignificant relationship with the firm performance measured by ROA and GM but negative and significant relationship exists with Tobin’s Q. Firms in the engineering sector of Pakistan are largely dependent on short term debt but debts are attached with strong covenants which affect the performance of the firm.Originality/Value: This is first paper to study an individual sector like engineering industry in Pakistan on the mentioned topic.

Intellectual, Human and Structural Capital Effects on Firm Performance as Measured by Tobin's Q

2016 ◽  
Vol 23 (4) ◽  
pp. 259-273 ◽  
Author(s):  
Rezvan Hejazi ◽  
Mehrdad Ghanbari ◽  
Mohammad Alipour
Keyword(s):  
Firm Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Structural Capital

scholarly journals Components of working capital and profitability in Saudi Arabian companies

2021 ◽  
Vol 18 (3) ◽  
pp. 52-62
Author(s):  
Abdul Rahman Shaik
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Tobin’S Q ◽  
Working Capital ◽  
Tobin's Q ◽  
Return On Equity ◽  
Cash Conversion Cycle ◽  
Operating Profit ◽  
Industrial Sectors ◽  
Firm Profitability

The study examines the influence of the cash conversion cycle (one of the components of working capital) on the firm profitability measured in terms of return on equity (ROE), return on assets (ROA), Tobin’s q, and gross operating profit (GROP) in the manufacturing sector of Saudi Arabia. The study selects a sample of 100 companies from nine industrial sectors listed on the Tadawul Stock Exchange starting from 2008 to 2019. A pooled regression is estimated to report the empirical results. The results report a positive and significant association between the components of working capital in terms of cash conversion cycle and the firm profitability in terms of ROA, ROE, and Tobin’s q, except for the GROP, where there is a negative and significant relationship. The study reports that the growth in firm performance is associated with supplier’s financing terms and inventory ordering cost. The results also show that larger firms are more profitable than smaller firms. Hence, the current study confirms the formulated hypothesis of having a significant association between the components of working capital and firm profitability.

scholarly journals Pengaruh Manajemen Laba Akrual dengan Pendekatan Revenue Discretionary Model terhadap Kinerja Perusahaan

TRIKONOMIKA ◽  
2014 ◽  
Vol 13 (1) ◽  
pp. 108
Author(s):  
Sepriahangga Wahyu Windharta ◽  
Nurmala Ahmar
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Financial Statements ◽  
Research Approach ◽  
Tobin’S Q ◽  
Manufacturing Companies ◽  
Tobin's Q ◽  
Revenue Model ◽  
Revenue Models

Accrual earnings management is a form of manipulation of financial statements on the accrual components to increase its profit in order to look good in the investors perception. This research approach discretionary  revenue published by Stubben in 2010 with two different formulas are conditional revenue models and revenue models to measure the accrual earnings management to be proxies to the performance of the company. The purpose of this study was to analyze the effect of accrual earnings management by discretionary revenue approach on firm performance in manufacturing companies listed on the Stock Exchange. The Results of analysis for this study were 1) Accrual earnings management is measured using a Revenue Model does not affect the Return On Asset. 2) Accrual earnings management is measured using a Revenue Model does not affect the Tobin’s q. 3) Accrual earnings management is measured using a Conditional Revenue Models effect on the Return On Asset. 4) Accrual earnings management is measured using a Conditional Revenue Models has no effect on Tobin’s q.

scholarly journals The Relationship between Extent of Internationalization and Firm Performance (Taiwan 1992–2017)

2021 ◽  
Vol 2021 ◽  
pp. 1-20
Author(s):  
Shih-Yung Wei ◽  
Li-Wei Lin
Keyword(s):  
Firm Performance ◽  
Operating Performance ◽  
Board Structure ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Moderating Variables ◽  
Average Operating ◽  
And Performance ◽  
And Control ◽  
The Impact

The purpose of this study was to discuss the impact of the extent of internationalization on firm performance measured for firms with a high Tobin’s Q (firms with good operating performance), a median Tobin’s Q (firms with average operating performance), and a low Tobin’s Q (firms with poor operating performance). In addition to discussion on the impact of internationalization on firm performance, this study also discussed the impact of corporate proprietary assets (using assets, R&D, marketing, and management-related variables as moderating variables) and control variables (scale of company, debt-asset ratio, firm age, board structure, and proportion of pledged shares by directors) on firm performance. The research results showed that there is an S-shaped relationship between extent of internationalization and firm performance. However, further discussion found that there is an S-shaped relationship between extent of internationalization and performance for firms with a high Tobin’s Q but a slight decline in the middle of the S-shaped curve, as well as a general linear negative correlation between extent of internationalization and performance for firms with a median Tobin’s Q and an inverted U-shaped correlation between extent of internationalization and performance for firms with a low Tobin’s Q.

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