Determinants of Tobin’s q: the case of listed construction and material companies in Vietnam

Abstract

This paper aims to identify the determinants of Tobin’s q. Exploring a sample of 152 construction and material companies listed on the Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX), the study applies the method by James Tobin (1968) to evaluate Tobin’s q of the Vietnamese listed firms from 2013 to 2015. The multiple regression model is employed to estimate impacts of the main factors on Tobin’s q. We find significantly positive effects of leverage and firm age on Tobin’s q, but a negative influence of firm size on this ratio. The paper caters for the overall portrait of construction and material in Vietnam in order to clarify this ratio. The paper caters for the overall portrait of construction and material in Vietnam in order to clarify and reconcile the results.