PurposeThis paper aims to empirically explore the influences of Tobin’s Q and CEO compensation of 249 US companies on their stock returns.Design/methodology/approachHeterogeneous panel data for these companies over 2004-2012 are used invoking panel cointegration techniques.FindingsPanel unit root tests and Pedroni cointegration tests confirm nonstationarity of each variable and cointegration among the above three variables. The panel vector error-correction model (VECM) estimates reveal long-run convergence with tepid adjustment. The short-run net interactive feedback effects are positive. The panel generalized method of moments estimates lend further support to the panel VECM inferences.Originality/valueThe topic is unique and the existing literature on this topic is scant. Relatively new econometric techniques have been applied for estimation using panel data. The results are quite insightful, in the authors’ view.
Journal of Financial Economic Policy – Emerald Publishing
Published: Apr 3, 2018
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera