skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Corporate social responsibility and idiosyncratic risk in the restaurant industry: does brand diversification matter?

International journal of contemporary hospitality management, 2020-08, Vol.32 (9), p.2925-2946 [Peer Reviewed Journal]

Emerald Publishing Limited ;Emerald Publishing Limited 2020 ;ISSN: 0959-6119 ;EISSN: 1757-1049 ;DOI: 10.1108/IJCHM-03-2020-0167

Full text available

Citations Cited by
  • Title:
    Corporate social responsibility and idiosyncratic risk in the restaurant industry: does brand diversification matter?
  • Author: Ozdemir, Ozgur ; Erkmen, Ezgi ; Kim, Minji
  • Subjects: Consumers ; Corporate growth ; Corporate image ; Corporate profits ; Costs ; Diversification ; Economic conditions ; Equity ; Financial leverage ; Hospitality industry ; Operating leverage ; Profitability ; Research & development expenditures ; Restaurants ; Social responsibility ; Stakeholders
  • Is Part Of: International journal of contemporary hospitality management, 2020-08, Vol.32 (9), p.2925-2946
  • Description: Purpose This study aims to examine the link between corporate social responsibility (CSR) and idiosyncratic risk in the restaurant industry. The study also explores whether brand diversification magnifies the risk reduction effect of CSR in the restaurant industry. Design/methodology/approach The study uses an unbalanced panel of 274 firm-year observations for 43 restaurant firms over the period 1995–2015. Models are estimated via fixed effect regression with robust standard errors. Findings The study finds that CSR involvement reduces idiosyncratic risk and this risk reduction is intensified when restaurant firms operate a portfolio of brands. Research limitations/implications The study’s findings are limited to restaurant industry, therefore, generalization of the findings to other industries requires delicate care. Brand diversification is a simple brand count due to a lack of brand sales data. Practical implications CSR activities are not cost burden for restaurant firms. Indeed, CSR could be a viable strategy to reduce the volatility in future expected cash flows, hence the idiosyncratic risk. This risk reduction could help owners/managers access to capital with lower cost. Moreover, the study suggests that CSR practices should not be implemented in isolation from firm marketing strategy such as portfolio of brands. Originality/value Although prior hospitality research puts forth some evidence using systematic risk as the measure of firm risk, this measure may not best suit the purpose in CSR context given that CSR is a direct, firm-specific strategy. Hence, the current study provides both new evidence with firm-specific, idiosyncratic risk and introduces an important contingency situation when the risk reduction effect of CSR would become more profound for restaurant firms.
  • Publisher: Bradford: Emerald Publishing Limited
  • Language: English
  • Identifier: ISSN: 0959-6119
    EISSN: 1757-1049
    DOI: 10.1108/IJCHM-03-2020-0167
  • Source: ProQuest Central
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait