Factors Affecting Systematic Risk in the US Restaurant Industry

Woo Gon Kim, Bill Ryan and Silvio Ceschini
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Woo Gon Kim: Dedman School of Hospitality, College of Business, Florida State University, 1 Champions Way, UCB, Room 4100, Tallahassee, FL 32306, USA

Tourism Economics, 2007, vol. 13, issue 2, 197-208

Abstract: This study examines the effects of the financial ratios on systematic risk in the restaurant industry. The effects of those determinants on risk were also compared between the quick-service and full-service segments. The study used 58 publicly traded restaurant firms listed in COMPUSTAT within the category of eating and drinking places (SIC code 5812). To explain systematic risk, six financial variables were included in the study: profitability, leverage, efficiency, liquidity, growth and firm size. The most significant financial variables that affect systematic risk were profitability (return on investment), leverage and liquidity.

Keywords: systematic risk; quick-service segment; full-service segment; financial variables (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:13:y:2007:i:2:p:197-208

DOI: 10.5367/000000007780823131

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