IDEAS home Printed from https://ideas.repec.org/a/taf/accfor/v23y1999i2p193-205.html
   My bibliography  Save this article

A comparison of the impact of franchising on return and risk for two Australian industries

Author

Listed:
  • Rick Newby
  • Malcolm Smith

Abstract

Since the mid‐1960s the ‘franchise phenomenon’ has had a significant impact on the Australian economy, generating a large proportion of its gross retail trade. However, little work has so far been conducted in measuring the relative effectiveness of franchising, especially in terms of the associated risk. Where risk has been measured, it has normally been expressed in terms of survival rates relative to non‐franchised entities (for example, Williams 1991; Newby, Smith and Armstrong 1993). This paper argues that the use of firm survival as the measure expressing the success of franchising is short‐sighted and inadequate, since it ignores the effect of franchising on surviving firms, and presents results from two industries, to determine whether franchises generate higher financial returns than non‐franchises, and if there is any difference in the risk of those returns. The results indicate that franchising does have an impact on both risk and return, but not one which is consistent across all industries.

Suggested Citation

  • Rick Newby & Malcolm Smith, 1999. "A comparison of the impact of franchising on return and risk for two Australian industries," Accounting Forum, Taylor & Francis Journals, vol. 23(2), pages 193-205, June.
    • Handle: RePEc:taf:accfor:v:23:y:1999:i:2:p:193-205
    DOI: 10.1111/1467-6303.00011
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/1467-6303.00011
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1111/1467-6303.00011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Madanoglu, Melih & Lee, Kyuho & Castrogiovanni, Gary J., 2011. "Franchising and firm financial performance among U.S. restaurants," Journal of Retailing, Elsevier, vol. 87(3), pages 406-417.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:accfor:v:23:y:1999:i:2:p:193-205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/racc .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.