Does corporate growth really matter in the restaurant industry? [Summary]

TR Number
Date
2007-03
Journal Title
Journal ISSN
Volume Title
Publisher
Virginia Tech
Abstract

In this study, the authors hypothesize that growth strategies are not necessarily always performance-enhancing strategies that are sustainable. This is contrary to what industry managers tend to believe to be the outcome of growth strategies. Based on past research, a second hypothesis is developed that corporate liquidity impacts performance in a more positive way than growth strategies, and therefore, should be considered in the decision-making framework of firms before they launch into new products and/or markets. The interrelationship between corporate growth and liquidity is also tested, which further highlights the importance of pursuing corporate liquidity.

Description
Keywords
Corporate strategies, Growth, Liquidity, Firm performance, Free cash flow per share, Return on equity, Restaurant industry
Citation