New restaurants and their intra-industry effects: evidence from Portugal
This paper investigates the intra-industry effects resulting from the birth of a new restaurant at Portugal. Using event-study methods, this paper finds that, in the year the new competitors open for business, industry rivals experience an average abnormal loss of -17.6% in their return-on-assets...
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| Format: | Article |
| Language: | English |
| Published: |
University of Algarve, ESGHT/CINTURS
2017-01-01
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| Series: | Tourism & Management Studies |
| Subjects: | |
| Online Access: | https://tmstudies.net/index.php/ectms/article/view/897/pdf_46 |
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| _version_ | 1832570002206621696 |
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| author | Luís Miguel Serra Coelho |
| author_facet | Luís Miguel Serra Coelho |
| author_sort | Luís Miguel Serra Coelho |
| collection | DOAJ |
| description | This paper investigates the intra-industry effects resulting from the birth of
a new restaurant at Portugal. Using event-study methods, this paper finds
that, in the year the new competitors open for business, industry rivals
experience an average abnormal loss of -17.6% in their return-on-assets,
which is due to a significant decrease in their profit margin, and asset
turnover ratio. Regression analysis further shows that high industry
concentration, low labor productivity, and low asset profitability magnify
the rivals’ underperformance, which is particularly acute when the
restaurants are located at Lisbon and Oporto, the two most heavily
populated Portuguese cities. Overall, this paper contributes to the
literature studying the economics of the eating-places industry, and has
important implications for both practice, and public policy |
| format | Article |
| id | doaj-art-63c62b9ef4f04cea9a587d864fb25385 |
| institution | Kabale University |
| issn | 2182-8466 |
| language | English |
| publishDate | 2017-01-01 |
| publisher | University of Algarve, ESGHT/CINTURS |
| record_format | Article |
| series | Tourism & Management Studies |
| spelling | doaj-art-63c62b9ef4f04cea9a587d864fb253852025-02-02T18:22:56ZengUniversity of Algarve, ESGHT/CINTURSTourism & Management Studies2182-84662017-01-01131334210.18089/tms.2017.13105New restaurants and their intra-industry effects: evidence from PortugalLuís Miguel Serra Coelho0University of Algarve - Faculty of Economics and CEFAGE, Campus de Gambelas, Edifício 9, 8005-139, Faro, PortugalThis paper investigates the intra-industry effects resulting from the birth of a new restaurant at Portugal. Using event-study methods, this paper finds that, in the year the new competitors open for business, industry rivals experience an average abnormal loss of -17.6% in their return-on-assets, which is due to a significant decrease in their profit margin, and asset turnover ratio. Regression analysis further shows that high industry concentration, low labor productivity, and low asset profitability magnify the rivals’ underperformance, which is particularly acute when the restaurants are located at Lisbon and Oporto, the two most heavily populated Portuguese cities. Overall, this paper contributes to the literature studying the economics of the eating-places industry, and has important implications for both practice, and public policyhttps://tmstudies.net/index.php/ectms/article/view/897/pdf_46restaurantsintra-industry effectsabnormal operating performanceevent-study |
| spellingShingle | Luís Miguel Serra Coelho New restaurants and their intra-industry effects: evidence from Portugal Tourism & Management Studies restaurants intra-industry effects abnormal operating performance event-study |
| title | New restaurants and their intra-industry effects: evidence from Portugal |
| title_full | New restaurants and their intra-industry effects: evidence from Portugal |
| title_fullStr | New restaurants and their intra-industry effects: evidence from Portugal |
| title_full_unstemmed | New restaurants and their intra-industry effects: evidence from Portugal |
| title_short | New restaurants and their intra-industry effects: evidence from Portugal |
| title_sort | new restaurants and their intra industry effects evidence from portugal |
| topic | restaurants intra-industry effects abnormal operating performance event-study |
| url | https://tmstudies.net/index.php/ectms/article/view/897/pdf_46 |
| work_keys_str_mv | AT luismiguelserracoelho newrestaurantsandtheirintraindustryeffectsevidencefromportugal |