Advertising and Firm Risk: A Study of the Restaurant Industry

Yong Hee Kim, Min Chung Kim, John W. O'Neill

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Incorporating recent calls for understanding firm equity risk in relation to a firm's marketing efforts, this study examined the impacts of firm-level advertising spending on firm equity risk with publicly listed firms in the restaurant industry-a key hospitality industry. This study hypothesized and tested the effects of firm-level advertising expenditures on different types of firm equity risk (i.e., total, systematic, and unsystematic risk). Unlike previous empirical findings, we found that an increase in advertising expenditures significantly increased total and unsystematic risk of sampled restaurant firms. The findings provide new insights into the effects of advertising on firm equity risk in the literature, and important theoretical and managerial implications for restaurant firms.

Original languageEnglish (US)
Pages (from-to)455-470
Number of pages16
JournalJournal of Travel and Tourism Marketing
Volume30
Issue number5
DOIs
StatePublished - Jul 1 2013

Fingerprint

industry
equity
expenditure
firm
Firm risk
Restaurant industry
Equity risk
marketing
Advertising expenditures
Restaurants
effect

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Marketing

Cite this

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Advertising and Firm Risk : A Study of the Restaurant Industry. / Kim, Yong Hee; Kim, Min Chung; O'Neill, John W.

In: Journal of Travel and Tourism Marketing, Vol. 30, No. 5, 01.07.2013, p. 455-470.

Research output: Contribution to journalArticle

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