• DOI:10.2307/3665623
Corpus ID: 154790811

A Simple Approximation of Tobin's Q

@article{Chung1994ASA,
  title={A Simple Approximation of Tobin's Q},
  author={K. Chung and Stephen W. Pruitt},
  journal={Financial Management},
  year={1994},
  volume={23},
  pages={70}
}

K. Chung, Stephen W. Pruitt

Published 1994

Mathematics

Financial Management

View via Publisher

Save to Library

Create Alert

Cite

Launch Research Feed

This paper develops a simple formula for approximating Tobin's q. The formula requires only basic financial and accounting information. Results of a series of regressions comparing our approximate q values with those obtained via Lindenberg and Ross' (1981) more theoretically correct model indicate that at least 96.6% of the variability of Tobin's q is explained by approximate q.