Institutional Ownership and Firm Performance: Empirical Evidence from U.S.-Based Publicly Traded Restaurant Firms

Ming Chih Tsai, Zheng Gu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

31 Citations (Scopus)


This study examined the impact of institutional ownership on firm performance in the restaurant industry during 1999-2003. Taking into consideration the endogeneity of ownership structure, the relationship between the two was investigated in a simultaneous framework, and institutional ownership was found to be a significant and positive determinant of firm performance measured by proxy Q. In the meantime, financial institutions tend to invest in better performing, larger, and more profitable restaurant firms with lower financial leverage. Results support a positive endogenous relationship between institutional ownership and firm performance in the restaurant industry.
Original languageEnglish
Pages (from-to)19-38
Number of pages20
JournalJournal of Hospitality and Tourism Research
Issue number1
Publication statusPublished - 1 Jan 2007


  • firm performance
  • institutional ownership
  • ownership endogeneity
  • restaurant
  • two-stage least squares

ASJC Scopus subject areas

  • Education
  • Tourism, Leisure and Hospitality Management

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