Risk return and cost of equity of small and large casual-dining restaurants
Although the financial performance of US casual-dining restaurants has been better than returns in other restaurant segments, it is not known how large and small casual-dining restaurant companies perform when their stock returns are adjusted for risk. The present study uses traditional and contempo...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
2008
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| Online Access: | http://hdl.handle.net/20.500.11937/20608 |
| _version_ | 1848750354240372736 |
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| author | Madanoglu, M. Erdem, M. Gursoy, D |
| author_facet | Madanoglu, M. Erdem, M. Gursoy, D |
| author_sort | Madanoglu, M. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Although the financial performance of US casual-dining restaurants has been better than returns in other restaurant segments, it is not known how large and small casual-dining restaurant companies perform when their stock returns are adjusted for risk. The present study uses traditional and contemporary risk-adjusted performance and cost of equity models to fill the void in this area of research. The results indicate that large casual-dining restaurants outperformed their smaller counterparts on a risk-adjusted basis, and had a lower cost of equity for the 1998-2002 period. In addition, the findings demonstrate that the cost of equity estimates pose some serious challenges when sub-periods before and after September 11 events are included in the analysis. © 2007 Elsevier Ltd. All rights reserved. |
| first_indexed | 2025-11-14T07:35:30Z |
| format | Journal Article |
| id | curtin-20.500.11937-20608 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:35:30Z |
| publishDate | 2008 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-206082017-09-13T13:51:04Z Risk return and cost of equity of small and large casual-dining restaurants Madanoglu, M. Erdem, M. Gursoy, D Although the financial performance of US casual-dining restaurants has been better than returns in other restaurant segments, it is not known how large and small casual-dining restaurant companies perform when their stock returns are adjusted for risk. The present study uses traditional and contemporary risk-adjusted performance and cost of equity models to fill the void in this area of research. The results indicate that large casual-dining restaurants outperformed their smaller counterparts on a risk-adjusted basis, and had a lower cost of equity for the 1998-2002 period. In addition, the findings demonstrate that the cost of equity estimates pose some serious challenges when sub-periods before and after September 11 events are included in the analysis. © 2007 Elsevier Ltd. All rights reserved. 2008 Journal Article http://hdl.handle.net/20.500.11937/20608 10.1016/j.ijhm.2007.07.006 restricted |
| spellingShingle | Madanoglu, M. Erdem, M. Gursoy, D Risk return and cost of equity of small and large casual-dining restaurants |
| title | Risk return and cost of equity of small and large casual-dining restaurants |
| title_full | Risk return and cost of equity of small and large casual-dining restaurants |
| title_fullStr | Risk return and cost of equity of small and large casual-dining restaurants |
| title_full_unstemmed | Risk return and cost of equity of small and large casual-dining restaurants |
| title_short | Risk return and cost of equity of small and large casual-dining restaurants |
| title_sort | risk return and cost of equity of small and large casual-dining restaurants |
| url | http://hdl.handle.net/20.500.11937/20608 |