 Assessing the firm-level financial consequences of clusteringMoeen Naseer Butt and Ahmed S. Baig Journal of Business Research, 2024, vol. 178, issue C Abstract: Clustering of same-brand outlets has been shown to impact various outlet-level outcomes. However, the effect of clustering on a firm’s overall financial performance is yet to be fully assessed. This study investigates the impact of clustering on the firm’s short-term financial performance, measured as return on assets (ROA). It also assesses the moderating effects of the firm’s share of ownership and marketing spend. An examination of quarterly data of the five large publicly listed quick service restaurant firms operating more than 46,000 outlets across 50 US states from 2018 to 2021 finds that clustering hurts a firm's ROA. The share of ownership partially helps, whereas marketing spend registers a more robust moderating impact in improving a firm’s ROA. Further, our post hoc analysis finds a significant effect of clustering on a firm’s long-term financial performance measured as stock returns. These results provide important insights to scholars, business owners, and managers. Keywords: Clustering; Ownership; Marketing spend; Financial performance; ROA; Stock returns (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:178:y:2024:i:c:s0148296324001577 DOI: 10.1016/j.jbusres.2024.114653 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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