Benchmarking Firm Capabilities to Turn Undesirable Financial Performance Around in the U.S. Restaurant Industry

2014 ◽  
Vol 17 (5) ◽  
pp. 390-409
Author(s):  
Nan Hua
Keyword(s):  
Financial Performance ◽  
Restaurant Industry ◽  
Firm Capabilities ◽  
The U.S

The Effect of the Tipped Minimum Wage on Employees in the U.S. Restaurant Industry

2014 ◽  
Vol 80 (3) ◽  
pp. 633-655 ◽  
Author(s):  
William E. Even ◽  
David A. Macpherson
Keyword(s):  
Minimum Wage ◽  
Restaurant Industry ◽  
The U.S

CEO Overconfidence and the Effects of Equity-Based Compensation on Strategic Risk-Taking in the U.S. Restaurant Industry

2014 ◽  
Vol 42 (2) ◽  
pp. 224-259 ◽  
Author(s):  
Kwanglim Seo ◽  
Amit Sharma
Keyword(s):  
Risk Behaviors ◽  
Empirical Analysis ◽  
Risk Taking ◽  
Restaurant Industry ◽  
Positive Relation ◽  
Comprehensive Understanding ◽  
Strategic Risk ◽  
Strategic Risk Taking ◽  
The Relationship ◽  
The U.S

The purpose of this study was to investigate (a) the moderating effect of CEO overconfidence on the relationship between equity-based compensation and strategic risk-taking and (b) the relationship between franchising and strategic risk-taking in the U.S. restaurant industry. Given wide use of a franchise system among U.S. restaurant firms, an understanding of the association between equity-based compensation and strategic risk-taking relative to CEOs’ risk behaviors seems particularly important. We conducted our empirical analysis in the U.S. restaurant industry using a sample of 659 firm-year observations from 1992 to 2013. Our findings showed that (a) overconfident CEOs, while holding equity-based compensation, tended to take on more strategically risky investments, and (b) there was a positive relation between franchising and risk-taking. Considering the behavioral and industry-specific characteristics, study findings could provide a more comprehensive understanding of how equity-based compensation influences strategic risk-taking in the U.S. restaurant industry.

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