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The existing literature has focused heavily on investigating the effect of corporate social performance (CSP) on financial performance (FP) but has not paid sufficient attention to an inverse causation of the relationship. Moreover, while some of the literature argues that FP positively affects CSP, based on the slack resources theory, others have found negative effects of FP on CSP, supporting the managerial opportunism perspective. Thus, this paper aims to address the impact of FP on CSP. Further, this study examines the moderating role of franchising to better understand the relationship.

This study uses and expands the models derived from the CSP literature to confirm the effects of FP on CSP with the moderating role of franchising within the restaurant industry. Using two-way fixed effects models, it effectively addresses important problems embedded in the panel data.

The findings show a positive effect of FP on CSP, which is inconsistent with Park and Lee’s (2009) findings and supports the slack resources theory. Further, the interesting results show that the impact of FP on CSP diminishes as a firm franchises more, supporting the double-sided moral hazard framework of the agency theory.

This paper fills the lacuna in both the existing literature on the relationship between CSP and FP and the franchising. This study contributes to enhancing restaurant practitioners’ understanding of the double-sided moral hazard of agency theory unique to franchising context.

The purpose of this study is to investigate the moderating role of family involvement on the corporate social responsibility (CSR)-firm performance (FP) relationship in the US hospitality industry. Building on agency theory, this study examines how family ownership, management and board control influence the relationship between CSR and FP.

To examine the moderating effect of family ownership, family management and family board control, this study adopts the two-way fixed-effects model and performs a panel regression analysis with robust standard errors. The sample period spans 1994–2018 and 565 firm-year observations are included.

This study finds that the impact of CSR on FP is positively moderated by the extent of a firm’s family member involvement. In specific, all three aspects of corporate governance (i.e. ownership, management and board control) positively moderate the relationship between CSR and FP.

Findings of this study yield several recommendations for hospitality managers, including shaping strategic decisions for implementing CSR, by providing a unique perspective that the involvement of founding family members can be helpful in enhancing firm value through CSR activities.

This study sheds light on the further understanding of the CSR-FP link in the hospitality literature. In addition, this study provides practical guidelines for hospitality firms in the context of CSR by revealing possible advantages of strengthened founding family involvement.

The link between corporate social responsibility (CSR) and corporate firm performance (CFP) has been extensively studied, but a significant research gap remains when considering potential mediating factors that can provide a more comprehensive and complete picture of the CSR-CFP link. Among the possible mediators, innovation is one of the most noteworthy factors, but previous studies have found inconsistent results between CSR and innovation in the service industry context. Existing studies have reported an insignificant or negative relationship between CSR and innovation in the service industry, including the hospitality industry. To clarify this controversy, this study aims to propose the positive mediating role of innovation to explain the CSR-CFP link in the hotel and casino industry.

To discover the relationship among CSR, innovation and CFP, a panel data analysis, the two-way fixed-effects model, is used with robust standard errors. Particularly, to examine the mediating role of innovation, this study conducts Sobel, Aroian and Goodman tests. The sample period is from 2000 to 2017, consisting of 342 firm-year observations.

With a sample of publicly traded US hotel and casino firms, this study confirms the mediating role of innovation and suggests a strategic direction of CSR, highlighting the importance of innovation in the hospitality industry.

This study presents an important piece of evidence regarding non-technological innovation and proposes a strategic direction of CSR in the hotel and casino industry to achieve competitive advantages.

Adopting a new measurement method of innovation using data envelopment analysis, this study serves as a reference for a better understanding of a role of innovation in the CSR-CFP link for hospitality scholars.

This study aims to develop a theoretical framework that specifies how corporate social responsibility (CSR) and ethical climate (ETHIC) affect pride in membership (PRIDE), and in turn, attitudinal responses (i.e. job satisfaction and turnover intention) among employees, solely focusing on dealers in the casino industry. In addition, the moderating role of customer orientation is examined for internally motivated enjoyment (ENJOY) and externally motivated needs (NEED).

This study uses a non-probability convenience-sampling method by distributing 400 individual questionnaires to respondents. A total of 358 responses are used for data analysis using exploratory and confirmatory factor analyses. Furthermore, this study tests the proposed hypotheses using structural equation modeling.

This study finds the effect of CSR on ETHIC and the effect of ETHIC on PRIDE along with the subsequent effect on attitudinal responses. Findings also reveal a significant moderating role of ENJOY (NEED) on the relationship between ETHIC (CSR) and PRIDE (PRIDE).

This study provides meaningful contributions to extant casino CSR literature, as well as opportunities for future research. The topic may be further explored from cross-cultural perspectives and adapt a methodology to enhance the generalizability and applicability of the findings.

This study attempts to explore the CSR effectiveness on casino dealers, in whom past empirical examination has found little interest. Moreover, according to the multi-experience model, this study investigates the relationships among CSR, ethical climate and pride in membership that have been rarely verified in the past literature. Finally, this study reveals a significant moderating role of ENJOY and NEED that has not been explored, particularly among casino dealers.

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.

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.

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.

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.

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.

The purpose of this study is twofold: to investigate the relationship between restaurant firms’ internationalization and systematic risk, and to further examine the relationship between internationalization and systematic risk based on the type of restaurant firm (i.e. limited-service vs full-service restaurants).

This study analyzes data from US-based publicly traded restaurant firms by estimating systematic risk based on the Carhart four-factor model and by performing a two-way random-effects model.

Findings support not only the risk-reduction effect of internationalization on systematic risk but also the moderating effect of the role of restaurant type on the relationship between internationalization and systematic risk. More specifically, the risk-reduction effect of internationalization on systematic risk is greater for limited-service than full-service restaurants.

The findings of this study can provide restaurant executives with more confidence in pursuing internationalization as part of their risk management strategy, acknowledging that more international operations could mitigate restaurant firms’ systematic risk. More specifically, limited-service restaurants can more significantly enjoy the risk-reduction benefits by increasing their international operations than full-service restaurants based on the findings of this study. Furthermore, risk-averse investors could consider purchasing shares of limited-service multinational restaurants’ stocks to enjoy more risk-reduction benefits.

By focusing on the restaurant industry with consideration for the restaurant type, this study provides more tailored recommendations for implementing internationalization strategies with regard to risk management.

Considering the increasing significance of corporate social responsibility (CSR) in the corporate world and the mixed findings of the financial implication of CSR investment in the financial economics literature, the purpose of this study is to examine the relationship between (im)material CSR investment and firm performance and the moderating role of airline type and economic conditions based on the stakeholder theory and institutional pressure argument.

This study uses a two-way random-effects model by firm and year along with using clustering coefficient estimation by firm to control for the possibility of inflated standard errors because of autocorrelation across years within a given firm.

This study finds that both material and immaterial CSR initiatives do not directly influence firm performance, but airline type and economic conditions do moderate the relationship. In specific, the study found that airlines’ investments in material CSR initiatives show an indifferent effect on firm performance between low-cost and full-service carriers and also between non-recessionary and recessionary periods. On the other hand, investments in immaterial CSR initiatives present different impacts on firm performance between low-cost and full-service carriers and between non-recessionary and recessionary periods. In details, the effect is more negative for low-cost carriers and recessionary periods than full-service carriers and non-recessionary periods.

This is the first empirical investigation of materiality for the airline industry in relation to firm performance using the industry-specific Materiality Map developed by the Sustainability Accounting Standards Board. Further, this study incorporates two additional moderators (airline type and economic conditions) to enhance the understanding of the proposed relationships between (im)material CSR and firm performance.

Drawing on symbolic interaction theory (SIT), this study aims to identify what makes corporate social responsibility (CSR) communication more favorable to customers in the chain restaurants context. Specifically, this study examines the direct relationships between the interactivity of CSR communication, brand trust and brand sincerity. In addition, the mediating role of brand trust (i.e. separate dimensions of brand reliability and intentions) and the moderated mediating role of self-congruity are explored.

A total of 418 US consumers with past experiences of participating in CSR campaigns organized by chain restaurants on social media were recruited using the online survey method of nonprobability sampling through Amazon Mechanical Turk in December 2021.

The results of this study revealed that the interactivity of CSR communication on social media affects brand sincerity; brand reliability and brand intentions mediate the positive effect of interactivity of CSR communication on brand sincerity; and customer’s self-congruity moderated the positive mediation effect via brand reliability.

Chain restaurant marketers need to understand the important role of interactivity as a key element of CSR communication on social media to help develop brand trust and brand sincerity in chain restaurants.

This study expands on SIT to support the symbolic benefits of interactive CSR communication on social media.

This study aims to examine how employees’ perceptions of customer-related and employee-related corporate social responsibility (CSR) initiatives influence their job satisfaction. Further, the study investigates whether employees’ organizational commitment mediates this proposed relationship and, more importantly, tests how such mediated relationships change according to the level of employees’ perceptions of their company’s sincerity in investing in CSR activities.

This study used an online survey to collect data and collected a total of 490 responses for the main analysis. A regression analysis and standard path-analytic approaches described by Hayes (2013) were conducted to test the proposed hypotheses.

Findings support the main effect of customer- and employee-related CSR on employees’ job satisfaction mediated by employees’ organizational commitment, as well as the moderating effect of the perceived sincerity of customer-related CSR but not employee-related CSR.

The current study focuses on comparing two types of CSR initiatives, i.e. employee- and customer-related, because these two groups are any company’s core stakeholders with the closest relationship to its operations, and they represent the internal and external stakeholders, respectively. Further, the current study investigates the moderating effect of employees’ perceptions of the sincerity of their company’s CSR initiatives on the relationship between the two types of CSR initiatives and employees’ job commitment.

The purpose of this study is to invoke prospect theory to construct an empirical framework to predict idiosyncratic risk, and argue that when a firm performs better than its benchmarks, the firm tends to play safe by avoiding firm-specific risk to maintain its satisfactory performance level, but when a firm performs worse than its benchmarks, the firm may become aggressive with taking more risks to achieve an increased level of performance.

This study tested the relationships between restaurant firms’ future idiosyncratic risk and the proposed firm financial characteristics. Heteroscedasticity- and autocorrelation-consistent (HAC) standard errors (Newey and West, 1994) were used to deal with potential problems of autocorrelations and heteroscedasticity. The standard error of residuals from the Fama-French three-factor model (Fama and French, 1993) was estimated to proxy for restaurant idiosyncratic risk.

The main analysis reveals that five financial characteristics are significant predictors for restaurant firms’ future idiosyncratic risk in accordance with the proposed, negative relationship based on the prospect theory.

Managers may predict their competitors’ future risk-taking behaviors using the current study’s findings, which will provide competitive advantage in a highly competitive business environment that we have now. Also, in practice, restaurant investors may consider findings of this study in forecasting future risks of their portfolio to help evaluate and revise their portfolios.

First, this is a new endeavor of its kind dealing with the restaurant industry, filling the void in the literature in predicting the risk-taking behavior of restaurant firms in a time of crisis. Second, this study forms a prediction model that establishes “predictive causality” (Diebold, 2001) motivated by prospect theory. Third, building upon prior research, this study comprehensively examines relationships between the firm characteristics that capture firm-specific strategies (Ou and Penman, 1989) and the idiosyncratic risk that are “associated with firm-specific strategies” (Luo and Bhattacharya, 2009) in a restaurant setting. Finally, the findings of this study bear significant implications for practitioners and other parties of interest.