Geographical Diversification, Risk and Firm Performance of US Casinos

Autor:	Kyung Ho Kang, Kyuseok Lee, Kyuwan Choi, Seoki Lee
Rok vydání:	2012
Předmět:	Finance business.industry Geography Planning and Development Diversification (marketing strategy) Competitive advantage Tobin's q Tourism Leisure and Hospitality Management Systematic risk Cash flow Profitability index Herfindahl index business Industrial organization Stock (geology)
Zdroj:	Tourism Geographies. 14:117-146
ISSN:	1470-1340 1461-6688
Popis:	Although geographical diversification is an emerging issue and has been considered a key competitive strategy in the casino industry, an examination of the effects of geographical diversification on casino firms’ risks and firm performances has been sparse. Thus, this study investigates the impact of the degree of geographical diversification on risk measured by the standard deviation of daily stock returns and firm performance measured by Tobin's q of publicly traded US casino firms. The results of this study show the trade-off between risk and firm performance associated with the degree of geographical diversification of sampled casino firms. While geographical diversification can reduce risk, at the same time it can diminish firm performance. The findings suggest that when implementing a geographical diversification strategy, managers of casino firms need more elaborate decision making, while they need to develop devices and management capabilities to mitigate problems that deter firm performance.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::3565a7c0b1792f4bf6a44aa4f98a4d0a https://doi.org/10.1080/14616688.2011.593043 Zobrazit plný text záznamu