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A Q Model Investment System in Material and Immaterial Assets

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  • Gema Pastor-Agustin
  • Manuel Espitia-Escuer
  • Marisa Ramirez-Aleson

Abstract

The aim of this paper is to study the determinants of investment on material and immaterial assets of Spanish firms considering they are heterogeneous assets. With this objective, we propose an investment model based on both prospective models and Tobin’s q. The developed model is then applied to analyse the investment determinants of material and immaterial assets over a panel of 87 non-financial Spanish firms that have been quoting on the Stock Market during 12 years. Results show that material investment decisions are isolated from immaterial assets, whereas immaterial investment is affected by tangible investment and stock.

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Bibliographic Info

Article provided by European Research Studies Journal in its journal European Research Studies Journal.

Volume (Year): X (2007)
Issue (Month): 1-2 ()
Pages: 43-64

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Handle: RePEc:ers:journl:v:x:y:2007:i:1-2:p:43-64

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Related research

Keywords: Investment models; Assets Heterogeneity; Tobin’s q; Spanish Firms.;

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  2. Lindenberg, Eric B & Ross, Stephen A, 1981. "Tobin's q Ratio and Industrial Organization," The Journal of Business, University of Chicago Press, vol. 54(1), pages 1-32, January.
  3. Epstein, Larry G, 1983. " Aggregating Quasi-Fixed Factors," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(2), pages 191-205.
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  10. Elena Bontempi & Alessandra Del Boca & Alessandra Franzosi & Marzio Galeotti & Paola Rota, 2004. "Capital Heterogenity: Does it Matter? Fundamental Q and Investment on a Panel of Italian Firms," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 674-690, Winter.
  11. Leonard Nakamura, 1999. "Intangibles: what put the new in the new economy?," Business Review, Federal Reserve Bank of Philadelphia, issue Jul, pages 3-16.
  12. Webster, Elizabeth, 2000. "The growth of enterprise intangible investment in Australia," Information Economics and Policy, Elsevier, vol. 12(1), pages 1-25, March.
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