This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Park, S.-Y. Articles by Lee, S. Search for Related Content Social Bookmarking                         What's this?

Financial Rewards for Social Responsibility

A Mixed Picture for Restaurant Companies

School of Travel Industry Management at the University of Hawai'i at Manoa, parksy{at}hawaii.edu

Seoki Lee

School of Tourism and Hospitality Management at Temple University, seokilee{at}temple.edu

This study empirically examines the effects of publicly traded U.S. restaurant companies' social responsibility activities on the following two financial performance measures: accounting performance (return on equity) and value performance (total shareholder return). Results show that responsibility activities have a U-shaped effect on accounting performance, whereas they have no impact on a firm's value performance. Those results imply that restaurant companies in the United States may increase their investment in socially responsible activities to improve their accounting performance over the long term. While the study did not investigate communication mechanisms, it may be that restaurant companies should promote their social responsibility activities to consumers (and the financial market) as a means of enhancing the effects of those activities on their value performance.

Key Words: corporate social responsibility (CSR) • restaurant companies • financial performance • accounting performance • value performance

Cornell Hospitality Quarterly, Vol. 50, No. 2, 168-179 (2009)
DOI: 10.1177/1938965509331814


CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    Technorati    Twitter    What's this?