Advertising and Firm Risk: A Study of the Restaurant Industry

Yong Hee Kim, Min Chung Kim, John W. O'Neill

Research output: Contribution to journalArticlepeer-review

17 Scopus citations

Abstract

Incorporating recent calls for understanding firm equity risk in relation to a firm's marketing efforts, this study examined the impacts of firm-level advertising spending on firm equity risk with publicly listed firms in the restaurant industry-a key hospitality industry. This study hypothesized and tested the effects of firm-level advertising expenditures on different types of firm equity risk (i.e., total, systematic, and unsystematic risk). Unlike previous empirical findings, we found that an increase in advertising expenditures significantly increased total and unsystematic risk of sampled restaurant firms. The findings provide new insights into the effects of advertising on firm equity risk in the literature, and important theoretical and managerial implications for restaurant firms.

Original languageEnglish (US)
Pages (from-to)455-470
Number of pages16
JournalJournal of Travel and Tourism Marketing
Volume30
Issue number5
DOIs
StatePublished - Jul 2013

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Marketing

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