According to the prosecutors, he did not remember Tobin's q but answered to most of questions.

If the market value reflected solely the recorded assets of a company, Tobin's q would be 1.0.

Tobin's q is the ratio between the market value and replacement value of the same physical asset.

According to one author, Tobin's q could replace Interest (I).

The following graph is an example of Tobin's q for all U.S. corporations.

High Tobin's q values encourage companies to invest more in capital because they are "worth" more than the price they paid for them.

Tobin's q was introduced in 1968 by James Tobin and William Brainard.

Tobin's q is said to be influenced by market hype and intangible assets so that we see swings in q around the value of 1.

If Tobin's q is greater than 1.0, then the market value is greater than the value of the company's recorded assets.

The ratio Tobin's q is calculated by dividing the market value of a company by the replacement value of the book equity:

On the other hand, if Tobin's q is less than 1, the market value is less than the recorded value of the assets of the company.

Although it is not the direct equivalent of Tobin's q, it has become common practice in the finance literature to calculate the ratio by comparing the market value of a company's stock with its equity book value.

Another theory of fixed investment determination is based on Tobin's q, the ratio of the market value to the acquisition cost of an additional unit of physical capital; investment is hypothesized to be an increasing function of this ratio.

On the microeconomic level, academic studies have shown that ACSI data is related to a firm's financial performance in terms of return on investment (ROI), sales, long-term firm value (Tobin's q), cash flow, cash flow volatility, human capital performance, portfolio returns, debt financing, risk, and consumer spending.