The Investment Opportunity Set And Its Proxy Variables

By T. Adam, Vidhan K. Goyal. 2008

392 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c6e80a76776d9f41bbb73a75685c12b828ea1e9c

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Citations in the corpus

Can Growth Options Explain the Trend in Idiosyncratic Risk (2008, result): “Given the similarity of the results for the five proxies for growth options and the results of Adam and Goyal (2003), which suggest that MABA is the most informative growth options proxy, we conserve space by focusing on MABA as the growth option proxy and the Campbell, Lettau, Malkiel, and Xu (2001”
Do Leverage, Dividend Payout, and Ownership Concentration Influence Firms' Value Creation? An Analysis of Brazilian Firms (2010, methodology): “Although a number of different measures can proxy growth opportunities, including the price-to-earnings ratios and market-to-book (MBA) ratios, Adam and Goyal (2008) show that the MBA ratio has the highest information content with respect to investment opportunities.”
Institutions and corporate capital structure in the MENA region (2016, positive): “Based on prior literature (e.g., Adam and Goyal, 2008; Frank and Goyal, 2009), we use the market-to-book ratio to proxy for growth opportunities (GROWTH).”
What are the Reliably Important Determinants of Capital Structure in China (2014, background): “Between the two types of measures, the MB ratio is the most reliable proxy in the United States (Adam and Goyal, 2008).”
Managerial ability and corporate investment opportunity (2018, background): “Adam and Goyal (2008) show that the market-to-book ratio, or the closely related measure used in a great deal of studies, Tobin's q,2 contains the highest information content with regard to investment opportunity.”
Capital Structure Decisions: Which Factors are Reliably Important? (2009, positive): “Adam and Goyal (2008) show that it is also the most reliable. A higher market-to-book ratio, however, may also be influenced by stock mispricing. If market timing drives capital structure decisions, a higher market-to-book ratio should reduce leverage as firms exploit equity mispricing through equit”
Rating the Ratings: How Good are Commercial Governance Ratings? (2010, background): “…for risk factors (Fama and French, 1993), accounting conservatism (Roychowdhury and Watts, 2007), and investment opportunity set or future growth opportunities (Adam and Goyal, 2008), it is unclear whether the market-to-book ratio captures the underlying theoretical construct of ‘‘firm value.’’”