Corporate social responsibility and idiosyncratic risk in the restaurant industry: does brand diversification matter?

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dc.authoridKIM, MINJI/0000-0003-0443-5717
dc.authorwosiderkmen, ezgi/ABG-7373-2021
dc.authorwosidKIM, MINJI/AAW-6200-2020
dc.contributor.authorOzdemir, Ozgur
dc.contributor.authorErkmen, Ezgi
dc.contributor.authorKim, Minji
dc.date.accessioned2024-07-18T20:47:14Z
dc.date.available2024-07-18T20:47:14Z
dc.date.issued2020
dc.departmentİstanbul Bilgi Üniversitesien_US
dc.description.abstractPurpose This study aims to examine the link between corporate social responsibility (CSR) and idiosyncratic risk in the restaurant industry. The study also explores whether brand diversification magnifies the risk reduction effect of CSR in the restaurant industry. Design/methodology/approach The study uses an unbalanced panel of 274 firm-year observations for 43 restaurant firms over the period 1995-2015. Models are estimated via fixed effect regression with robust standard errors. Findings The study finds that CSR involvement reduces idiosyncratic risk and this risk reduction is intensified when restaurant firms operate a portfolio of brands. Research limitations/implications The study's findings are limited to restaurant industry, therefore, generalization of the findings to other industries requires delicate care. Brand diversification is a simple brand count due to a lack of brand sales data. Practical implications CSR activities are not cost burden for restaurant firms. Indeed, CSR could be a viable strategy to reduce the volatility in future expected cash flows, hence the idiosyncratic risk. This risk reduction could help owners/managers access to capital with lower cost. Moreover, the study suggests that CSR practices should not be implemented in isolation from firm marketing strategy such as portfolio of brands. Originality/value Although prior hospitality research puts forth some evidence using systematic risk as the measure of firm risk, this measure may not best suit the purpose in CSR context given that CSR is a direct, firm-specific strategy. Hence, the current study provides both new evidence with firm-specific, idiosyncratic risk and introduces an important contingency situation when the risk reduction effect of CSR would become more profound for restaurant firms.en_US
dc.identifier.doi10.1108/IJCHM-03-2020-0167
dc.identifier.endpage2946en_US
dc.identifier.issn0959-6119
dc.identifier.issn1757-1049
dc.identifier.issue9en_US
dc.identifier.scopus2-s2.0-85089021794en_US
dc.identifier.scopusqualityQ1en_US
dc.identifier.startpage2925en_US
dc.identifier.urihttps://doi.org/10.1108/IJCHM-03-2020-0167
dc.identifier.urihttps://hdl.handle.net/11411/7738
dc.identifier.volume32en_US
dc.identifier.wosWOS:000558308800001en_US
dc.identifier.wosqualityQ1en_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherEmerald Group Publishing Ltden_US
dc.relation.ispartofInternational Journal of Contemporary Hospitality Managementen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectFinancial Performanceen_US
dc.subjectCorporate Social Responsibilityen_US
dc.subjectIdiosyncratic Risken_US
dc.subjectRisk Reductionen_US
dc.subjectBrand Diversificationen_US
dc.subjectFirm Performanceen_US
dc.subjectModerating Roleen_US
dc.subjectFinancial Performanceen_US
dc.subjectShareholder Valueen_US
dc.subjectStrategic Csren_US
dc.subjectImpacten_US
dc.subjectManagementen_US
dc.subjectBoarden_US
dc.subjectAcquisitionsen_US
dc.subjectInformationen_US
dc.titleCorporate social responsibility and idiosyncratic risk in the restaurant industry: does brand diversification matter?en_US
dc.typeArticleen_US

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