TY - JOUR
T1 - Influence of Corporate Governance on Financial Performance among Alcohol Beverage Firms
AU - Choi, Danny Woosik
AU - Velikova, Natalia
AU - Lee, Seoki
N1 - Publisher Copyright:
© 2020 Taylor & Francis Group, LLC.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020
Y1 - 2020
N2 - The purpose of this study empirically investigates the influence of corporate governance structure on the firm’s financial performance of the alcohol beverage industry in the United States. Secondary financial data were collected for the U.S.-based alcohol beverage firms. Bivariate correlation and fixed-effects model analyses were performed to examine the proposed impacts. A two-stage least-squares (2SLS) regression analysis was subsequently performed to examine the endogeneity. The analysis outcomes support the finding that certain corporate governance attributes significantly affect the financial performance of alcohol beverage firms. Theoretically, the findings reaffirmed the financial impact of industry-specific corporate governance structures (i.e., stewardship versus agency theory, and integrated traits of hospitality, retail, and distribution of the alcohol industry). Managerial implications are suggested in terms of the alcohol industry’s specific corporate governance models, such as the balance among common stock ownership, executive tenure, board-size increase, and levels of control by outside board members. As a relevant sector (e.g., festival) of the hospitality and tourism industry, corporate governance of the alcohol beverage industry has never been empirically nor theoretically studied. The governance attributes in this study are compared between stewardship and agency theory and provide a better understanding of alcohol beverage industry firms’ corporate governance structure.
AB - The purpose of this study empirically investigates the influence of corporate governance structure on the firm’s financial performance of the alcohol beverage industry in the United States. Secondary financial data were collected for the U.S.-based alcohol beverage firms. Bivariate correlation and fixed-effects model analyses were performed to examine the proposed impacts. A two-stage least-squares (2SLS) regression analysis was subsequently performed to examine the endogeneity. The analysis outcomes support the finding that certain corporate governance attributes significantly affect the financial performance of alcohol beverage firms. Theoretically, the findings reaffirmed the financial impact of industry-specific corporate governance structures (i.e., stewardship versus agency theory, and integrated traits of hospitality, retail, and distribution of the alcohol industry). Managerial implications are suggested in terms of the alcohol industry’s specific corporate governance models, such as the balance among common stock ownership, executive tenure, board-size increase, and levels of control by outside board members. As a relevant sector (e.g., festival) of the hospitality and tourism industry, corporate governance of the alcohol beverage industry has never been empirically nor theoretically studied. The governance attributes in this study are compared between stewardship and agency theory and provide a better understanding of alcohol beverage industry firms’ corporate governance structure.
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U2 - 10.1080/1528008X.2020.1802389
DO - 10.1080/1528008X.2020.1802389
M3 - Article
AN - SCOPUS:85089149212
SN - 1528-008X
JO - Journal of Quality Assurance in Hospitality and Tourism
JF - Journal of Quality Assurance in Hospitality and Tourism
ER -