Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry

Seoki Lee; Yoon Koh; Kyung Ho Kang

doi:10.1016/j.ijhm.2010.11.002

Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry

Seoki Lee, Yoon Koh, Kyung Ho Kang

School of Hospitality Management

Research output: Contribution to journal › Article › peer-review

36 Scopus citations

Abstract

During the recent and ongoing economic turmoil, countless businesses have been facing financial distress and many have filed for bankruptcy. This issue is especially critical for the restaurant industry due to restaurants' sensitivity to economic fluctuations. Therefore, the purpose of this study is to examine the financial distress issue in the U.S. restaurant industry. In particular, the study examines a moderating effect of capital intensity on the relationship between a firm's leverage and degree of financial distress. The dataset includes publicly traded U.S. restaurant firms during the period 1990-2008. The study measures the degree of financial distress by modified Z-scores, and findings suggest a positive moderating effect of capital intensity on the relationship between leverage and financial distress.

Original language	English (US)
Pages (from-to)	429-438
Number of pages	10
Journal	International Journal of Hospitality Management
Volume	30
Issue number	2
DOIs	https://doi.org/10.1016/j.ijhm.2010.11.002
State	Published - Jun 2011

All Science Journal Classification (ASJC) codes

Tourism, Leisure and Hospitality Management
Strategy and Management

Access to Document

10.1016/j.ijhm.2010.11.002

Cite this

@article{4b603e106132438992cdd94f74496619,

title = "Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry",

abstract = "During the recent and ongoing economic turmoil, countless businesses have been facing financial distress and many have filed for bankruptcy. This issue is especially critical for the restaurant industry due to restaurants' sensitivity to economic fluctuations. Therefore, the purpose of this study is to examine the financial distress issue in the U.S. restaurant industry. In particular, the study examines a moderating effect of capital intensity on the relationship between a firm's leverage and degree of financial distress. The dataset includes publicly traded U.S. restaurant firms during the period 1990-2008. The study measures the degree of financial distress by modified Z-scores, and findings suggest a positive moderating effect of capital intensity on the relationship between leverage and financial distress.",

author = "Seoki Lee and Yoon Koh and Kang, {Kyung Ho}",

year = "2011",

month = jun,

doi = "10.1016/j.ijhm.2010.11.002",

language = "English (US)",

volume = "30",

pages = "429--438",

journal = "International Journal of Hospitality Management",

issn = "0278-4319",

publisher = "Elsevier Ltd",

number = "2",

}

TY - JOUR

T1 - Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry

AU - Lee, Seoki

AU - Koh, Yoon

AU - Kang, Kyung Ho

PY - 2011/6

Y1 - 2011/6

N2 - During the recent and ongoing economic turmoil, countless businesses have been facing financial distress and many have filed for bankruptcy. This issue is especially critical for the restaurant industry due to restaurants' sensitivity to economic fluctuations. Therefore, the purpose of this study is to examine the financial distress issue in the U.S. restaurant industry. In particular, the study examines a moderating effect of capital intensity on the relationship between a firm's leverage and degree of financial distress. The dataset includes publicly traded U.S. restaurant firms during the period 1990-2008. The study measures the degree of financial distress by modified Z-scores, and findings suggest a positive moderating effect of capital intensity on the relationship between leverage and financial distress.

AB - During the recent and ongoing economic turmoil, countless businesses have been facing financial distress and many have filed for bankruptcy. This issue is especially critical for the restaurant industry due to restaurants' sensitivity to economic fluctuations. Therefore, the purpose of this study is to examine the financial distress issue in the U.S. restaurant industry. In particular, the study examines a moderating effect of capital intensity on the relationship between a firm's leverage and degree of financial distress. The dataset includes publicly traded U.S. restaurant firms during the period 1990-2008. The study measures the degree of financial distress by modified Z-scores, and findings suggest a positive moderating effect of capital intensity on the relationship between leverage and financial distress.

UR - http://www.scopus.com/inward/record.url?scp=79751531101&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79751531101&partnerID=8YFLogxK

U2 - 10.1016/j.ijhm.2010.11.002

DO - 10.1016/j.ijhm.2010.11.002

M3 - Article

AN - SCOPUS:79751531101

SN - 0278-4319

VL - 30

SP - 429

EP - 438

JO - International Journal of Hospitality Management

JF - International Journal of Hospitality Management

IS - 2

ER -

Moderating effect of capital intensity on the relationship between leverage and financial distress in the U.S. restaurant industry

Abstract

All Science Journal Classification (ASJC) codes

Access to Document

Other files and links

Fingerprint

Cite this