Short-term debt and firm performance in the US restaurant industry: the moderating role of economic conditions

• Autores: Seoki Lee, Michael C. Dalbor
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 19, Nº. 3, 2013, págs. 565-581
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • Based on the strategic debt argument, this study hypothesizes that short-term debt generally leads a restaurant firm to poor performance due to the lack of a strategic approach from using short-term debt.

    The study further examines the moderating role of economic conditions in the relationship between short-term debt and firm performance through a pooled regression analysis with heteroscedasticity-consistent standard errors. The data are from publicly traded US restaurant firms for the period 1990�2009. The findings support the research hypothesis that short-term debt in general has a negative impact on the performance of restaurant firms, while the negative effects are significantly reduced during economic downturns.