The influence of a smoking ban on the profitability of Belgian restaurants
Objective: To examine whether the nationwide smoking ban, imposed in 2007, had an impact on the profitability of Belgian restaurants. Data and methods: Objective financial reporting data on 1,613 restaurants were analysed with return on assets as the outcome measure. The data were collected from the Belfirst database and cover the period 2004-2009. To assess the impact of the smoking ban, a differences-indifferences estimation method was used, with bars serving as the control group. The regression model was estimated, while controlling for firm-specific characteristics and unobserved firmlevel heterogeneity. Results: The variable of interest is the interaction between the smoking ban dummy and the dummy for the treatment group. The coefficient of this variable is insignificant. Conclusion: The adoption of the nationwide smoking ban did not affect the profitability of Belgian restaurants.
Year of publication: |
2012-06
|
---|---|
Authors: | SCHOENMAKER, S. DE ; CAUWENBERGE, P. VAN ; BAUWHEDE, H. VANDER |
Institutions: | Faculteit Economie en Bedrijfskunde, Universiteit Gent |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The influence of agglomerations on firm profitability
SCHOENMAKER, S. DE, (2013)
-
The effects of local fiscal policy on firm profitability in the Flemish hospitality industry
SCHOENMAKER, S. DE, (2013)
-
Knowledge networking and growth in service firms
SCHOONJANS, B., (2011)
- More ...