An Empirical Framework of Financial Characteristics and Outperformance in Troubled Economic Times: Evidence from the Restaurant Industry
Keywords
United States of America, National economy, Financial performance, Restaurants, Financial outperformance, Economic downturns
Abstract
Purpose– The purpose of this paper is to explore the financial characteristics associated with outperformance of US public restaurant firms in challenging economic times and the empirical measure of outperformance proposed herein. Design/methodology/approach– This study utilizes a Logit model and considers the relevant financial variables in annual deviation forms to explore an empirical model that explains financial outperformance in troubled economic times for the restaurant industry. Findings– The results of the study indicate that larger market share, asset turnover, and profit margin, combined with lower leverage, BM, earnings variance, and size, in addition to franchise utilization, appear to produce collectively a fine balance for success in difficult economic times. Research limitations/implications– This paper does not address the fine balance between short‐term financial performance and long‐term sustainability. Further, the employed contemporaneous modeling framework may limit generality of findings of this paper.
Publication Date
10-1-2013
Original Citation
Nan Hua, Qu Xiao, Elizabeth Yost, (2013) "An empirical framework of financial characteristics and outperformance in troubled economic times: Evidence from the restaurant industry", International Journal of Contemporary Hospitality Management, Vol. 25 Iss: 6, pp.945 - 964
Number of Pages
945-964
Document Type
Paper
Language
English
Source Title
International Journal of Contemporary Hospitality Management
Volume
25
Issue
6
Copyright Status
Unknown
Copyright Date
2013
College
Rosen College of Hospitality Management
Location
Rosen College of Hospitality Management
STARS Citation
Hua, Nan; Xiao, Qu; and Yost, Elizabeth, "An Empirical Framework of Financial Characteristics and Outperformance in Troubled Economic Times: Evidence from the Restaurant Industry" (2013). Faculty Scholarship and Creative Works. 157.
https://stars.library.ucf.edu/ucfscholar/157