Tobin’s Q model is one of the economic models for evaluation of companies, proposed by Tobin in 1968 and represents the ratio of the market value of the companies’ shares plus the book value of its debts to the book value of its assets. It seems that one reason for the difference in abilities of the above said companies to produce cash from operating and investing activities. Therefore this research intends to find out a relationship between Tobin’s Q and cash flows from operating and investing activities so that market participants can gain necessary knowledge about market efficiency and choosing investment basket with the aid of it. The results obtained from the research shows that there is no relationship between Tobin’s Q ratios and cash flows from operating activities in the companies listed in TSE.
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