The Effect of Macroeconomic Variables on Tobin's Q Indicator in the Agro-based Companies (Case Study: Sugar Industry)

Developing countries, including Iran, have a high degree of volatility of macroeconomic variables. Fluctuations inex change rate, bank interest rate and inflation rate can create insecure environment for in vestorsin Iran. Hence, this study examined the impact of macroeconomic variables on the Tobin’s Q index for the Sugar companies of Tehran Stock Exchange (TSE) during the period between1380-1390. A panel data model in the form of random-effects analysis was performed. The results indicate that the exchange rate, inflation rate and therate of return onassetshavean insignificant negative impact on the Tobin’s Q index. Bank interest rateshave a significant negative impact, while Market value has a significant positive impact on the Tobin’s Q index.