Tobin’s Q and Its Determinants: A Study of Market Valuation in MISC Berhad
Posted: 31 May 2019
Date Written: May 9, 2019
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.
Keywords: Tobin’s Q, Market Valuation, Internal Factors, External Factors
JEL Classification: E31, E32, G33
Suggested Citation: Suggested Citation