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Tobin’s Q and Its Determinants: A Study of Market Valuation in MISC Berhad

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  • Syazwani, Anis

Abstract

The study examines the impact of Tobin’s Q or market valuation determinants on firm corporate governance of MISC Berhad. Tobin’s Q of the firm represents the ratio of market capitalization plus long-term debt to total assets. This study employs time series regression analysis from 2012 to 2016. The findings show that only internal factors giving significant impact to the market valuation of the firm when it has been tested solely in Model 1 and combined for both internal and external factors in Model 3. Meanwhile, there is no significant result when the external factors were tested solely in Model 2. The multiple linear regression analysis shows that the Altman Z score is the most significant and positively influenced the market valuation of MISC Berhad.

Suggested Citation

  • Syazwani, Anis, 2019. "Tobin’s Q and Its Determinants: A Study of Market Valuation in MISC Berhad," MPRA Paper 93776, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:93776
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    References listed on IDEAS

    as
    1. Agrawal, Anup & Chadha, Sahiba, 2005. "Corporate Governance and Accounting Scandals," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 371-406, October.
    2. Bhagat, Sanjai & Bolton, Brian, 2008. "Corporate governance and firm performance," Journal of Corporate Finance, Elsevier, vol. 14(3), pages 257-273, June.
    3. Catherine M. Daily & Dan R. Dalton, 1994. "Corporate governance and the bankrupt firm: An empirical assessment," Strategic Management Journal, Wiley Blackwell, vol. 15(8), pages 643-654, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. azahar, intan nur asyiqin, 2019. "An Analysis Of Performance In E-Commerce Industry," MPRA Paper 97210, University Library of Munich, Germany.

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    More about this item

    Keywords

    Tobin’s Q; Market Valuation; Internal Factors; External Factors;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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