Analizing Risk in the Restaurant Industry

The objectives of the study are twofold. It first aims to examine whether systematic risk is influenced and predicted by certain financial variables in the overall U.S. restaurant industry, and it sets out to determine which variables better explain the systematic risk. Second, it intends to investigate how those financial variables affect the systematic risk with regards to the quick-service and the full-service segments. The financial variables utilized were profitability, leverage, efficiency, liquidity, growth, and size. For the overall restaurant industry, profitability was found to be the most significant variable and negatively related to systematic risk. The second significant variable was leverage, positively related to systematic risk. The third significant variable was liquidity; it was positively related to systematic risk. By comparing the quick and full-service segments, profitability was statistically significant in both segments. Leverage was found to be significant in the quick-service segment.

Grantor dc:publisher

Oklahoma State University

Year dc:date.issued

2005

Author dc:creator

• Ceschini, Silvio

Advisor dc:contributor.advisor

• Kim, Woody

Committee members dc:contributor.committeemember

• Jerrold, Leong
• Ryan Bill

Statement dc:rights

• Copyright is held by the author who has granted the Oklahoma State University Library the non-exclusive right to share this material in its institutional repository. Contact Digital Library Services at lib-dls@okstate.edu or 405-744-9161 for the permission policy on the use, reproduction or distribution of this material.

Language dc:language

en_US

Handle dc:identifier.uri

http://hdl.handle.net/20.500.14446/9684

OAI record oai:identifier

https://openresearch.okstate.edu/server/oai/request?verb=GetRecord&metadataPrefix=dim&identifier=oai%3Aopenresearch.okstate.edu%3A20.500.14446%2F9684