Risk-Adjusted Performance of Three Restaurant Segments in the USA

Woo Gon Kim, Jun Zhong, Ming-Hsiang Chen and Ersem Karadag
Additional contact information
Woo Gon Kim: International Center for Hospitality Research and Development, Dedman School of Hospitality and College of Business, Florida State University, 288 Champions Way, UCB 4116, PO Box 3062541, Tallahassee, FL 32306-2541, USA
Jun Zhong: School of Hotel and Restaurant Administration, Oklahoma State University, 210 HESW, Stillwater, OK 74078, USA
Ming-Hsiang Chen: Department of Finance, National Chung Cheng University, Chia-Yi, Taiwan, ROC
Ersem Karadag: School of Business, Robert Morris University, Moon Township, PA 15108-1189, USA

Tourism Economics, 2009, vol. 15, issue 1, 139-152

Abstract: This study evaluates the risk-adjusted performance of three restaurant segments between 1 January 1998 and 31 December 2004. The Jensen, the Treynor and the Sharpe indexes were adopted as an analytical framework. The findings here are not entirely consistent with those of Kim and Gu (2003) because they show that the quick-service segment outperforms the other two segments. However, using NASDAQ, NYSE and S&P 500 as benchmarks, this study illustrates that the performance of the economy/buffet segment tops the quick-service and full-service segments. It further indicates that the restaurant industry carries too much unsystematic risk, which it needs to reduce.

Keywords: risk; Sharpe index; Treynor index; Jensen index; restaurant segments (search for similar items in EconPapers)
Date: 2009
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/000000009787536681 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:15:y:2009:i:1:p:139-152

DOI: 10.5367/000000009787536681

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().