The Tobin's Q Investment Theory and The Equilibrium Mechanism of the Capital Market

The traditional investment theory has neglected the function of the capital market,but the Tobin's Q investment theory make association between the enterprise and the capital market. The purpose of this paper is twofold. First,to review the literatures on the investment theory,illuminating the principle of the Tobin's Q investment. Second,to probe into the relationship between the enterprise and the capital market,with exerting the Tobin's Q investment theory. Finally,taking the United States capital market as an example,the article address how the Tobin's Q evaluate and verify the equilibrium mechanism of the Capital Market