چكيده لاتين :
Introduction
With the separation of ownership from management and after emerging the "agency theory" (Baiman, 1982; Namazi, 1985), performance evaluation has been profound as one of the most significant topics in management accounting. In this regard, different approaches have been devised.
The major aims of this research are: 1) investigating the Tobinʹs Q applications among companies accepted in Tehran Security Exchange (TSE) market, 2) determining the relationship between the Tobinʹs Q ratio with other performance criteria, and 3) comparing the employement of the Tobinʹs Q in different industries.
Research hypothesis
Given the purpose of the study, and following Foster (1986) and related literature (e.g., Bharadwaj, et al. 1999, Chin, et al. 2006), the following hypothesis are presented:
1. TSE firms are currently employing the "Tobinʹs Q" ratio for their performance evaluations.
Liquidity ratios
2. A significant relationship exists between the "Tobinʹs Q" ratio and the "current ratio".
3. A significant relationship exists between the "Tobinʹs Q" ratio and the "quick ratio".
Turnover ratios
4. A significant relationship exists between the "Tobinʹs Q" ratio and the "asset turnover" ratio.Profitability ratios
5. A significant relationship exists between the "Tobinʹs Q" ratio and the "earnings per share".
6. A significant relationship exists between the "Tobinʹs Q" ratio and the "return on assets".
7. A significant relationship exists between the "Tobinʹs Q" ratio and the "residual income".
8. A significant relationship exists between the "Tobinʹs Q" ratio and the "sales growth".
9. A significant relationship exists between the "Tobinʹs Q" ratio and the "profit growth".
Other issues
10. A significant relationship exists between the "Tobinʹs Q" ratio and the "operating profit".
11. A significant relationship exists between the "Tobinʹs Q" ratio and the "sales".
12. A significant relationship exists between the "Tobinʹs Q" ratio and the "price of the firmʹs stocks".
13. The amount of the "Tobinʹs Q" ratio is different in various industries.
Methods
This study is based upon the "Survey research", and the "Content-analysis" (Smith, 2003). The amount of the sales, gross operating profits, earnings per share, return on assets, assets turnover, residual income, stock prices, sales growth, profit growth, current ratio, and quick ratio were employed as independent variables, and their values were calculated based upon appropriate formulas reflected in the literature.
Due to the information limitations of the TSE, and among different versions of the Tobinʹs Q ratio, the simple Tobinʹs Q formula was exerted (Leewillen and Badernet, 1997: 80).
The population of the study consists of all TSE firms that were operating actively during 2001-2005. Totally, 78 firms, that were qualified, were found among 39 different industries. Due to the lack of complete information and discrepancies, all qualified firms were grouped into 15 industries based upon their assimilated information.
The required data were gathered via relevant persian and foreign books, articles, and publications (e.g., Kaplan & Norton, 2001; Horngren et al. 2006, Namazi, 2002 & 2003). In order to test the first hypothesis, first pilot interviews were made, and then by preparing an appropriate questionnaire, the necessary information were gathered. The validity of the questioner was tested by the "face-validity" criterion and by and itʹs value was at 87%. The reliability of the questionnaire was tested by "cronbachʹs alpha" and itʹs value was at 93%. For testing hypothesis 2 through 13, the required data were gathered from published data in the TSE market, weekly reports, monthly reports, and Dena, Sahra and Tadbir Pardaz Computer packages, consequentely, the regression analysis technique was employed for testing the second through the 13th hypothesis for different industries.
Results
The result of the first hypothesis indicates that the Tobinʹs Q ratio is not currently being employed by the TSE firms. This finding is contrary to the results of the foreign studies including Mark (1988), Demsetz and Villalonga (2000) and Wolfe (2003). The strong emphasis on exerting traditional accounting ratios, and lack of the familiarity with the Tobinʹs Q mechanism, are major imputes for not adopting this Tobinʹs Q ratio.
The findings of this study also indicate that, among the prevalent performance evaluation techniques, 1) operating profit, 2) net profit, and 3) total income are the most dominant evaluation measures among the TSE firms respectively. The major reasons for applying these measures are the familiarity of managers and accountants with respect to these concepts, and the availability of required data via the financial statements reporting.
The results of this study also reveals that there is no significant relationship between the Tobinʹs Q ratio and gross operating profit, sales, assets return, sales growth, profit growth, current ratio, and quick ratio.
Discussion & Conclusion
It seems like the utilization of the historical cost axioms in computing the current ratio, quick ratio, and assets turnover, a high inflation rate of the economy, and using the accrual accounting basis in calculating the gross profit and sales are major imputes that are responsible for the emergence of such results.
When aforementioned results, however, are considered for each of the years 2001-2005 individually, the results are slightly different for 2001 and 2005. This finding could be related to volatility of the stock market during those years. These conclusions are also consistent with the findings of Arcelus, et al. (2005) and Landsman and Shapiro (1995), and since such a study has not been conducted in Iran, no comparison can be attempted internally.
Finally, the statistical results enunicated that when the Tobinʹs Q ratio is exerted, there is no significant differences between the average of the Tobinʹs Q in various industries. However, the automobile industry demonstrated the highest amount of the Tobinʹs Q among various industries. This might be attributed to the size of the related companies and their leading industry.
