Journal of Hospitality Financial Management: Volume 15, Issue 1
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Is the Hospitality Industry More Likely to Reprice Stock Options?
(2007-01-01) Denizci, Basak
Hospitality companies are known to be sensitive to the economy and movements in the market. When overall performance of the company is poor because of a market wide fall, hospitality managers should not be panelized for the decrease in the stock price. In such cases, it is acceptable to reprice the stock option to realign the incentives and to minimize the agency problem. This paper examines whether repricing of hospitality firms are more likely to reprice options after a stock price decrease that is accompanied by a market wide fall. Although the overall results are consistent with prior literature, the hypothesis is marginally supported.
The effectiveness of a brand call-center in revenue recovery FOr HospITALITY FIRMS
(2007-01-01) Mount, Daniel J.; Xiao, Qu
As organizations gradually recognize that enhanced customer satisfaction leads to better customer retention and profitability, the economic value of customers has been increasingly studied in various industries and individual companies in the past decade (e.g., Goodman, Ward, & Yanovsky, 1998; Reinartz & Kumar, 2000; Zeithaml, 2000). There has also been a significant increase in research on service recovery (Brown, Cowles & Tuten, 1996). However, very little research has aimed at the economic value of customers retained by effective service recovery in general and none, specifically, in the hotel industry. This paper presents a methodology to measure revenue recovery and the results of a six-year study on the effectiveness of a hotel call-center in recovering revenue for the hotel brand. The results show that the call-center has been effective in recovering revenue in that the recovery has been significant and is greater than the administrative costs of the call-center operation.
Casino Stocks and Katrina: An Example of Market Over-Reaction?
(2007-01-01) Flanegin, Frank R.; Rudd, Denis P.; Litzinger, Patrick J.; Mills, Richard
How efficient was the market in anticipating the impact of Hurricane Katrina on the Gulf coast casino industry? This study uses the event study methodology to investigate the stock market’s reaction affecting equity prices of small casino companies with operations on the Gulf Coast centered on Biloxi, Mississippi. Cumulative Abnormal Returns (CARs) for 1 day, 3 day, and 6 day event windows are examined.. As such the impact of Katrina on stock prices of casino firms in the Gulf Coast is better understood.
An Examination of Financial Leverage Trends in the Lodging Industry
(2007-01-01) Lee, Seoki
This study examines financial leverage trends of firms in the US lodging industry for the period 1980 to 2005. It compares mean and median leverage ratio estimates of lodging firms to find which works better as an industry norm during the entire sample period, as well as during economic expansion and recession periods. Research results suggest that the industry median leverage ratio is more valid than the mean industry ratio as a proxy for the lodging industry. Results also suggest that the industry median leverage ratio is valid during the recession periods, but not during the expansion periods.
AHFME Academic Member 2005 Total Annual Earnings Survey
(2007-01-01) Schmidgall, Raymond S.
This study was conducted to determine the 2005 annual earnings of hospitality financial management educators. Fifty percent of AHFME’s members affiliated with educational institutions responded. Annual base salaries ranged from $45,000 to $150,000. The lowest-paid member is an instructor while the highest paid member is a full professor. Most respondents supplement their base salaries by both teaching during summer school and consulting. The total annual earnings of members ranged from $45,500 to $240,500. Hospitality financial management educators appear to be more highly compensated than the average college professors.