Resumen de The elusive marginal q

Tom Berglund

• This article discusses problems with proposed methods to estimate firm specific marginal q-ratios, where marginal q measures the value impact of new investment. The article concludes that suggested methods are likely to produce biased estimates since they fail to separate fluctuations in the value of assets in place, from the ex-post value increase specifically caused by the undertaken new investment. The usefulness of attempts to separate efficiency of new investments from efficiency of managing the firm's assets in place is questioned.