Food and Beverage Management Commons^™

The Effect Of Brand Diversification And Systematic Risk On Firm Shareholder Wealth: The Case Of Brinker International, Inc., Abdullah Makki

Electronic Theses and Dissertations

Divestiture activity within the restaurant industry has increased in the last twenty years, however there is a dearth of research investigating the subsequent effects of the phenomenon. In particular none of the studies in the literature, have specifically examined the effects of restaurant firms' brand diversification strategies and systematic risk on shareholder wealth when controlling for divestiture completions. This research extends the knowledge from previous work on corporate unbundling and brand diversification strategies to the unique restaurant industry. Drawing on agency theory, the long- and short-term effects of the resulting brand diversification levels on firm shareholder wealth following a divestiture …