An Agency Perspective on Franchising
Franchising is commonly viewed as a source of expansion capital for small companies with "limited access to capital markets". Franchising, however, is used by many large, publicly traded companies. This paper summarizes the agency-cost explanation for why firms franchise and provides related empirical tests. In particular, the study extends existing empirical work on the cross-sectional determinants of the own versus franchise decision and provides new time series evidence on the valuation effects of franchise repurchases. The results support the agency explanation for franchising and suggest that there is a cost/benefit trade-off in deciding between owning versus franchising that faces the large as well as the small company.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 20 (1991)
Issue (Month): 1 (Spring)
|Contact details of provider:|| Postal: |
Web page: http://www.fma.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fma:fmanag:brickley91. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Courtney Connors)The email address of this maintainer does not seem to be valid anymore. Please ask Courtney Connors to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.