Impact of the COVID-19 pandemic : Evidence from the U.S. restaurant industry

© 2020 Elsevier Ltd. All rights reserved..

The current study examines how the effect of COVID-19 on U.S. restaurant firms' stock returns varies according to the firms' pre-pandemic characteristics by employing three firm-level dimensions (financial conditions, corporate strategies, and ownership structure). Employing 795 firm-year observations obtained from annual reports and other databases, this study found that restaurant firms with past characteristics of larger size, more leverage, more cash flows, less ROA, and more internationalization are more resilient to stock declines reacting to COVID-19 than otherwise similar firms. Whereas, dividend, franchising, institutional ownership, and managerial ownership did not show any significant moderating effect on the relationship between COVID-19 and stock returns. This study sheds light on the research topic by providing insights into drivers of restaurant firm's stock returns during the COVID-19 shock. Future studies can employ the variables and method used in the current study to extend the understanding of the issue.

Media Type:

Electronic Article

Year of Publication:

2020

Contained In:

International journal of hospitality management - Vol. 92 (2020), p. 102702

Language:

English

Contributors:

Song, Hyoung Ju
Yeon, Jihwan
Lee, Seoki

Urls:

Volltext

Keywords:

COVID-19
Corporate strategies
Financial conditions
Journal Article
Ownership structure
Restaurants
Stock returns

Notes:

Date Revised 01.12.2020

published: Print-Electronic

Citation Status PubMed-not-MEDLINE

Copyright: From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine

Physical Description:

Online-Ressource

doi:

10.1016/j.ijhm.2020.102702

PMID:

33024347

PPN (Catalogue-ID):

NLM316913111