Influence of Corporate Governance on Financial Performance among Alcohol Beverage Firms

Danny Woosik Choi, Natalia Velikova, Seoki Lee

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


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.

Original languageEnglish (US)
JournalJournal of Quality Assurance in Hospitality and Tourism
StateAccepted/In press - 2020

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management


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