Open Access. Powered by Scholars. Published by Universities.®
- Discipline
- Publication
Articles 1 - 2 of 2
Full-Text Articles in Business
A Modified Version Of The Lewellen And Badrinath Measure Of Tobin's Q, Darrell Lee, James Tompkins
A Modified Version Of The Lewellen And Badrinath Measure Of Tobin's Q, Darrell Lee, James Tompkins
James Tompkins
Lewellen and Badrinath (1997) propose a superior method of measuring Tobin's Q. Unfortunately, their method is prone to a high percentage of missing observations and results in selecting samples of larger and more mature firms with lower Q statistics. A slight modification is proposed that preserves the appeal of their method, yet almost doubles the sample size, avoids sampling problems, and is statistically indistinguishable from their Q measure. In addition, a step in the Lewellen and Badrinath Q calculation is clarified, which was inadvertently omitted in their explanation, and, if left undone, can result in downward-biased measures of Q.
Introduction: Do Compensation Policies Matter?, Ronald Ehrenberg
Introduction: Do Compensation Policies Matter?, Ronald Ehrenberg
Ronald G. Ehrenberg
[Excerpt] The papers in this volume should give the reader a sense of the exciting empirical research that has recently taken place on compensation-related issues. As a set, these papers considerably expand our empirical evidence on the effects of compensation policies. Several papers show that executive compensation is structured in a way that at least implicitly ties executive compensation changes to measures of corporate performance, and —crucially—that doing so leads to improved corporate performance (Leonard, Murphy/Gibbons, Abowd). Others show that compensation systems that pay workers for performance, in the sense of providing explicit or implicit incentives for high levels of …