MATERIAL AND IMMATERIAL SUSTAINABILITY INVESTMENT IN THE RESTAURANT INDUSTRY

Restricted (Penn State Only)
Author:
Kim, Bora
Graduate Program:
Hospitality Management
Degree:
Master of Science
Document Type:
Master Thesis
Date of Defense:
March 27, 2017
Committee Members:
  • Seoki Lee, Thesis Advisor
  • Anna S. Mattila , Committee Member
  • Amit Sharma, Committee Member
Keywords:
  • Materiality
  • Sustainability Investment
  • Franchising
  • Stakeholder Theory
  • Restaurant Industry
Abstract:
Sustainability investment, an investing discipline that considers environmental, social, and governance criteria, is growing rapidly with ever-increasing attention from stakeholders such as investors and managers. Using a novel industry-specific materiality (critical sustainability topics that are likely to impact a firm’s financial circumstance and operating performance) classifications of sustainability issues, the current study empirically examines the impact of allocating a firm’s resources to material and immaterial issues, and its link to firm performance in the restaurant context. Based on stakeholder theory, the moderating role of franchising, among the most peculiar characteristics to the restaurant industry, is further examined. A two-way fixed-effects model with clustering standard errors has been employed to analyze sample panel data of publicly traded restaurant firms and to test the suggested hypotheses.