Firms’ Accruals and Tobin’s q

Christian Calmès, Denis Cormier, François-Éric Racicot & Raymond Théoret
According to the neoclassical theory of investment, if firms’ accruals are a form of short-term investment they should be greatly influenced by the shadow price of capital, namely Tobin’s q. In the presence of financial market imperfections, cash-flows should also impact accruals since they proxy for liquidity constraints. In this paper, we test a new version of the cash-flows augmented accrual model featuring a proxy for Tobin’s q, and compare it to the most common...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.