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This article investigates, in further detail, a previously researched positive relationship between long-term debt and growth opportunities in the U.S. lodging industry. In addition to utilizing variables related to the three major theories of capital structure, the authors use alternative growth opportunity measures in an attempt to confirm previous findings in the hospitality literature. The results indicate that certain growth opportunity proxies do a better job of explaining the long-term debt choice for U.S. lodging firms. This research could be used to reexamine the long-term debt decision and growth opportunities in other sectors of the hospitality industry.

The purpose of this article is to evaluate the impact of previously theorized factors on the long-term debt ratio of publicly traded restaurant firms. The authors examined the financial literature to find variables related to three capital structure theories: contracting costs of debt, signaling effects, and tax effects. Using a cross-sectional pooled regression model on publicly traded restaurant firms, the authors' results largely confirm those of Barclay and Smith that were based on a wide range of industrial firms. Firm size and the probability of bankruptcy are positively correlated with higher long-term debt ratios. Firms with growth opportunities use less long-term debt. However, no significant relationship was found between the use of long-term debt and effective tax rates.

The purpose of this paper is to examine the capital structure decisions of restaurant firms. The paper hypothesizes that these decisions are based upon a financial "pecking order" as well as the position of the firm in the financial growth cycle. Using ratios from publicly traded restaurant firms in the U.S. and ordinary least squares regression models, the results tend to support the notion that both the pecking order and the financial growth cycle influence financing decisions. However, the results also indicate that there may be separate factors affecting long-term and short-term debt decisions made by restaurant managers.

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Purpose The purpose of the current study is to investigate the possible existence of a synergistic effect of internationalization and corporate social responsibility (CSR) on a firm’s value performance. Design/methodology/approach To empirically test the argument, this study analyzed data from 40 US-based publicly traded restaurant companies (251 observations) from 2000 to 2011 by performing a two-way fixed-effects model. Findings This study’s findings support the hypothesis that when implemented simultaneously, internationalization and CSR have a negative synergistic impact on a restaurant firm’s value performance. Practical implications Restaurant managers might need to inquire thoroughly into the timing and content of CSR investment strategies while entering into new international markets. Restaurant executives may additionally need to focus more on effective risk management than other issues (e.g. growth or reputation) when developing both internationalization and CSR strategies simultaneously. Originality/value By suggesting and demonstrating a negative synergistic effect of internationalization and CSR on a firm’s value, this study presents new and unique insights into previous research regarding the combined effect of the two strategies.

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