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Discussant for the paper: Beyond Q: Estimating Investment without Asset Prices

 

 

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Event Title: 23rd Annual Utah Winter Finance Conference, February 7-9, 2013
Presentation Title: Discussant for the paper: Beyond Q: Estimating Investment without Asset Prices
Presenters, Panelists and Guests:

Toni Whited (University of Rochester)

Description:

DISCUSSION:
Empirical corporate finance studies often rely on measures of Tobin’s Q to control for "fundamental" determinants of investment. However, since Tobin’s Q is a good summary of investment behavior only under very stringent conditions, it is far better to instead use the underlying state variables directly. In this paper we show that under very general assumptions about the nature of technology and markets, these state variables are easily measurable and greatly improve the empirical fit of investment models. Even a general first or second order polynomial that does not rely on additional details about the nature of the investment problem accounts for a substantially larger fraction of the total variation in corporate investment than standard Q measures.

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Host Organization: David Eccles School of Business, Department of Finance, The University of Utah
 
Original Presentation Date (USA): Friday, 8 February 2013
Presentation Start Time: 08:00 am MST | 14:30 GMT
Duration: 32min : 1sec
 
For More Information: 2013 Conference Schedule of Events
David Eccles School of Business, Department of Finance, The University of Utah
Presentation Host:

Conference Organizers:
Avner Kalay, Professor, Dept. of Finance, The University of Utah
James Schallheim , Professor, Dept. of Finance, The University of Utah

 
Copyright: 2013 Utah Winter Finance Conference, Dept. of Finance, The University of Utah
Use Restrictions: Unless specifically exempted, the reproduction, re-purposing, or re-distribution of materials found, contained, or provided via this program event is prohibited. Prior written consent is required for use of any images or material.
Primary Language: English