Date of Award

Fall 2014

Degree Type


Degree Name

Master of Science (MS)


Hospitality and Tourism Management

First Advisor

Chun-Hung Hugo Tang

Committee Member 1

Behnke Carl

Committee Member 2

Shawn Jang


This study examines the postacquisition accounting performance of acquiring firms in the restaurant industry between 1992 and 2012. Specifically, this study investigates the effects of different-sector and same-sector restaurants acquisitions between full-service and limited-service restaurants on restaurant firms' performance. Additionally, the Wilcoxon signed-rank test and regression model are used to examine return on assets (ROA) and return on equity (ROE) for the accounting performance of the acquiring restaurants.

The ROA and ROE reveal that the profitability is significantly negative up to 5 years after firms are acquired. However, negative effects are strongest within the first year after acquisition and decrease until 4 years after compared with previous years. After 4 years, the negative effects turn to positive compared to the previous year for ROA and ROE changes.

Further, the study reveals that the difference between different-sector and same-sector acquisitions indicates no significant relationship between ROA and ROE changes during all 5-year periods. Overall, this study shows that the effects of acquisitions between different sectors and the same sector are negative and there is no significant difference between them.