Franchising structure changes and shareholder value: Evidence from store buybacks and refranchising.

IF 9.5 1区管理学 Q1 BUSINESS

Journal of the Academy of Marketing Science Pub Date : 2023-01-01 Epub Date: 2023-01-14 DOI:10.1007/s11747-022-00921-3

Anna Sadovnikova, Manish Kacker, Saurabh Mishra

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引用次数: 1

Abstract

Drawing on agency theory and transaction cost analysis, this study investigates the impact of refranchising and buybacks of downstream retail units by franchising firms on shareholder value (i.e., stock returns). It further evaluates the contingency role of firm and industry factors in shaping this impact. An event study analysis over the years 2001-2020 confirms that both refranchising and buybacks positively affect stock returns. However, notable impact differences emerge between the two types of strategic decisions. For refranchising, firms with lower royalty rates, smaller returns-on-assets (ROA), and higher trade credit provided generate higher stock returns. Whereas, for buybacks, firms with higher royalty rates derive more value in stock markets. Analysis further shows that investors judge refranchising (buybacks) less (more) favorably in munificent industries, but industry dynamism has no effect on the stock returns generated from these moves. Together, the study offers important implications for franchising theory and retail practice in marketing.

Supplementary information: The online version contains supplementary material available at 10.1007/s11747-022-00921-3.

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特许经营结构的变化和股东价值：来自商店回购和重组的证据。

基于代理理论和交易成本分析，本研究调查了特许经营公司对下游零售单位的重组和回购对股东价值（即股票回报）的影响。它进一步评估了企业和行业因素在形成这种影响中的偶然作用。2001-2020年的一项事件研究分析证实，重组和回购都会对股票回报产生积极影响。然而，这两种类型的战略决策之间出现了显著的影响差异。对于重组，特许权使用费费率较低、资产回报率（ROA）较小、提供的贸易信贷较高的公司会产生更高的股票回报。然而，对于回购，特许权使用费费率较高的公司在股市中获得了更多价值。分析进一步表明，投资者认为在富裕行业重组（回购）不太（更）有利，但行业活力对这些举措产生的股票回报没有影响。总之，该研究为特许经营理论和零售营销实践提供了重要的启示。补充信息：在线版本包含补充材料，可访问10.1007/s11747-022-00921-3。

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来源期刊

Journal of the Academy of Marketing Science BUSINESS-

CiteScore

30.00

自引率

7.10%

发文量

期刊介绍： JAMS, also known as The Journal of the Academy of Marketing Science, plays a crucial role in bridging the gap between scholarly research and practical application in the realm of marketing. Its primary objective is to study and enhance marketing practices by publishing research-driven articles. When manuscripts are submitted to JAMS for publication, they are evaluated based on their potential to contribute to the advancement of marketing science and practice.