The effect of vaccination during the COVID-19 for the restaurant industry

Seoki Lee, Banghui Liu, Soyeon Jung, Bora Kim

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


The purpose of the study is to determine whether vaccination rates and the use of franchising have an impact on the volatility of stock returns in the restaurant industry. Based on the agency and resource scarcity theories, this study first examines the effect of vaccinations against COVID-19 on a restaurant firm's stock return volatilities caused by uncertainty during a crisis. The study further investigates whether firm-specific vaccination rates more greatly reduce stock return volatilities as the degree of franchising increases. With a two-way fixed-effects model, the study finds that the firm-specific vaccination rate reduces volatilities of the firm's stock returns. However, the study also finds an opposite direction to the moderating effect of franchising in that the more a restaurant firm franchises, the further the risk-reduction effect of its vaccination rate diminishes. Theoretical and practical implications along with limitations are discussed.

Original languageEnglish (US)
Article number103451
JournalInternational Journal of Hospitality Management
StatePublished - Apr 2023
Externally publishedYes


  • COVID-19
  • Franchising
  • Restaurant industry
  • Stock return volatilities
  • Vaccination rate

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management


Dive into the research topics of 'The effect of vaccination during the COVID-19 for the restaurant industry'. Together they form a unique fingerprint.

Cite this