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Investment and Value: a Neoclassical Benchmark

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Academic year: 2021

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Table 1: Summary statistics, data and model implications
Figure 1a: Investment rate (I/K) versus Tobin’s Q  Figure 1b.  I/K and q I/K = 0.0099q + 0.1435R2 = 0.156700.10.20.30.40.50.60.70.80.90102030405060 70 I/K and q I/K = 0.06ln(q) + 0.1406 R 2  = 0.2881 -0.100.10.20.30.40.50.60.70.8 0 10 20 30 40 50 60 70
Figure 2a: Investment rate (I/K) versus cash flow (CF/K)  Figure 2b.  I/K and CF/K I/K = 0.2095CF/K + 0.1171R2 = 0.235300.10.20.30.40.50.60.70.8-0.500.511.5 2 I/K and CF/K I/K = 0.0651Ln(CF/K) + 0.2796 R 2  = 0.2956 -0.1 0.10.30.50.7 0 0.2 0.4 0.6 0.8 1 1.
Figure 3: Investment rate (I(t)/K(t)) versus lagged investment rate         (I(t-1)/K(t-1))
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