Franchising structure changes and shareholder value: Evidence from store buybacks and refranchising

Drawing on agency theory and transaction cost analysis, this study investigates the impact of refranchising and buybacks of downstream retail units by franchising firms on shareholder value (i.e., stock returns). It further evaluates the contingency role of firm and industry factors in shaping this impact. An event study analysis over the years 2001–2020 confirms that both refranchising and buybacks positively affect stock returns. However, …