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

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• 作者：Seoki Lee ; ^a ; ^{seokilee@temple.edu} ; Yoon Koh¹ ; ^a ; ^{yoon.koh@temple.edu} ; Kyung Ho Kang¹ ; ^a ; ^{kyungho.kang@temple.edu}
• 关键词：Financial distress ; Capital intensity ; Leverage ; Moderating effect ; U.S. restaurant industry
• 刊名：International Journal of Hospitality Management
• 出版年：2011
• 出版时间：June 2011
• 年：2011
• 卷：30
• 期：2
• 页码：429-438
• 全文大小：235 K

文摘

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.