Increased Interest Expense and Management's Expense Preference Behaviour of Publicly-Traded Restaurant Firms
Abstract
The purpose of this research was to examine whether or not firms in a lessregulated industry with high competition exhibit expense preference behaviour, originally posited by Williamson (1963) with regards to interest expense. We used the restaurant industry to examine this issue because the restaurant industry is very sensitive to changes in market conditions due to its low profit margin. Interest expenses are exogenously determined and can have a serious impact on the profitability of the restaurant firms. The major finding of this paper shows that 'other expenses' increase along with interest expense. Managers do exhibit expense preference behaviour.
Publication Date
4-1-2010
Original Citation
Upneja, A., Dalbor, M., Hua, N., & Repetti, T. (2010). Increased Interest Expense and Management's Expense Preference Behaviour of Publicly-Traded Restaurant Firms. Journal Of Services Research, 10(1), 69-84.
Number of Pages
69-84
Document Type
Paper
Language
English
Source Title
Journal of Services Research
Volume
10
Issue
1
Copyright Status
Unknown
Copyright Date
2010
College
Rosen College of Hospitality Management
Location
Rosen College of Hospitality Management
STARS Citation
Upneja, Arun; Dalbor, Michael C.; Hua, Nan; and Repetti, Toni, "Increased Interest Expense and Management's Expense Preference Behaviour of Publicly-Traded Restaurant Firms" (2010). Faculty Scholarship and Creative Works. 380.
https://stars.library.ucf.edu/ucfscholar/380