Tobin’s Q approximation as a metric of firm performance: an empirical evaluation

Marketing scholars commonly use Tobin’s Q approximation as a metric of firm performance despite criticism that it might provide false positives for marketing-related research questions. Tobin’s Q approximation relies on accounting-based information that commonly undervalues intangibles, thus overstating firms’ performance in intangibles, such as marketing, human resources, and research and development. Our research empirically demonstrates and...