52ca6dc1___Carlson_School_of_Management__Presentation
[Date] 9/26/2014 [Presentation] 
Lucian Taylor, Wharton, Univeristy of Pennsylvania “ Intangible Capital and the Investment-q Relation Intangible Capital and the Investment-q Relation (352.62 KB) ” Including intangible capital in measures of investment and Tobin’s q produces a stronger investment-q relation. Specifically, regressions of investment on q produce higher R2 values and larger slope coefficients, both in firm-level and macroeconomic data. Including intangible capital also produces a stronger investment-cash flow relation. These results hold across a variety of firms and periods, but some results are even stronger where intangible capital is more important. These findings change our assessment of the classic q theory of investment, and they call for the inclusion of intangible capital in proxies for firms’ investment opportunities.
Finance Department Guest Seminar Archives 2010-Present | Carlson School of Management
Presentation