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http://hdl.handle.net/10397/89562
Title: | Indicating restaurant firms’ financial constraints : a new composite index | Authors: | Mun, SG Jang, S |
Issue Date: | 2019 | Source: | International journal of contemporary hospitality management, 2019, v. 31, no. 4, p. 2014-2031 | Abstract: | Purpose: The purpose of this study is to develop an index for financial constraints, specifically for restaurant firms, and to further validate the developed financial constraint index. Design/methodology/approach: This study used logistic regression with a composite criterion based on the dividend payout ratio, KZ index and Cleary index to estimate restaurant firms’ financial constraints. Then, a fixed-effects regression was used to verify the validity of the measurement of restaurant firms’ financial constraints. Findings: A restaurant firm’s operating profit, financial leverage, asset tangibility, sale of fixed assets and percentage change in number of employees are critical indicators for identifying financial constraints. The results indicated that in cases with positive operating cash flows, the effect of operating cash flow on capital investments continuously decreased as restaurant firms’ financial constraints increased. Originality/value: This study is unique in that the specific financial and operational characteristics of restaurant firms were included in the model to determine financial constraint indicators, such as sale of fixed assets and percentage change in number of employees. |
Keywords: | Cleary index Investment-cash flow sensitivity KZ index Restaurant financial constraint |
Publisher: | Emerald Group Publishing Limited | Journal: | International journal of contemporary hospitality management | ISSN: | 0959-6119 | EISSN: | 1757-1049 | DOI: | 10.1108/IJCHM-06-2018-0466 | Rights: | © Emerald Publishing Limited. This AAM is provided for your own personal use only. It may not be used for resale, reprinting, systematic distribution, emailing, or for any other commercial purpose without the permission of the publisher’.The following publication Mun, S.G. and Jang, S.(S). (2019), "Indicating restaurant firms’ financial constraints: a new composite index", International Journal of Contemporary Hospitality Management, Vol. 31 No. 4, pp. 2014-2031 is published by Emerald and is available at https://doi.org/10.1108/IJCHM-06-2018-0466. |
Appears in Collections: | Journal/Magazine Article |
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a0667-n08_855.pdf | Pre-Published version | 1.41 MB | Adobe PDF | View/Open |
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