Journal of Hospitality Financial Management: Volume 24, Issue 2
Loading...
Volume
Number
Issue Date
2016-14-11
Journal Title
Journal ISSN
Journal Volume
Articles
2016 – A YEAR IN REVIEW FOR HOTEL INDUSTRY FIRMS
(2016-11-14) Sheel, Atul
CONDITIONS ASSOCIATED WITH INCREASED RISK OF FRAUD: A MODEL FOR PUBLICLY TRADED RESTAURANT COMPANIES
(2016-11-14) Yost, Elizabeth; Croes, Robertico
Many restaurant industry examples provide evidence that as a firm’s internal control structure weakens and deficiencies are found, the opportunity for fraud increases significantly. Thus, the central focus of this study is to understand the factors that contribute to increased risk of fraud to determine which conditions promote an increased risk of fraud for publicly traded restaurant companies. The main premise of the study tests the application of the fraud triangle framework constructs to publicly traded restaurant companies during the time period of 2002–2014, using proxy variables defined through literature. The proxy variables selected were company size, amount of debt, employee turnover, organizational structure, the Recession, inflation rate, interest rate, executive stock compensation, return on assets, and international sales growth. The study used a probit model, using the incidence of a reported internal control deficiency as the measurable dichotomous dependent variable.
FINANCIAL IMPACT OF LEED AND ENERGY STAR CERTIFICATIONS ON HOTEL REVENUES
(2016-11-14) Robinson, Spencer; Singh, A. J.; Das, Prashant
This study examines the topline performance of a cross-section of hotels in the United States from 2009 to 2013 to test whether eco-labeled (LEED or Energy Star, in particular) properties generated revenue performance premiums over noncertified hotels. In other words, does it pay to acquire these labels? Regressions included regional, class, chain scale, size, and location controls. Custom comparable clusters were also separately tested. Results show that LEED-labeled hotels experience higher average daily rate but lower occupancy rates, resulting in a statistically insignificant difference in RevPAR. Energy Star labeled buildings consistently showed higher occupancy.
STOCK MARKET VALUATION OF HOTEL FIRMS’ SUSTAINABLE INITIATIVES
(2016-11-14) Dogru, Tarik; Sirakaya-Turk, Ercan
This study aimed to examine stock price reactions to announcements of Leadership in Energy and Environmental Design (LEED)-certified hotel openings. Using an event study method, the authors analyze news related to 15 hotel openings between the periods of 2009 and 2013. The results show that abnormal returns on stocks are significantly negative after the announcements of LEED-certified hotel openings, suggesting that stock market investors perceive sustainable investments to be value-decreasing projects in the short-term. Practical and theoretical implications are discussed within the framework of the microeconomic theory of pollution abatement.
ACTIVITY-BASED COSTING IN THE RESTAURANT INDUSTRY: WHAT’S PAST IS PROLOGUE
(2016-11-14) Raab, Carola; Zemke, Dina Marie
Restaurant managers often do not have a comprehensive understanding of all of the costs involved in operating a successful restaurant, leading to inaccurate, and potentially unprofitable, menu item pricing. One trend in cost analysis is to explore techniques used in other industries, including activity-based costing. A body of work exploring the application of activity-based costing in the foodservice industry has gradually evolved. A review of previous research on activity-based costing in various restaurant segments validates it as a consequential approach that is capable of reducing waste, preserving employment, and producing maintainable profitability in the restaurant industry.