STOCK MARKET VALUATION OF HOTEL FIRMS’ SUSTAINABLE INITIATIVES

Authors

Tarik Dogru, Boston University School of Hospitality Administration, Boston, MA
Ercan Sirakaya-Turk, The College of Hospitality, Retail and Sport Management, University of South Carolina, Columbia, SC

Type of Submission

Refereed Article

Abstract

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.

DOI

10.1080/10913211.2016.1236568

Recommended Citation

Dogru, Tarik and Sirakaya-Turk, Ercan (2016) "STOCK MARKET VALUATION OF HOTEL FIRMS’ SUSTAINABLE INITIATIVES," Journal of Hospitality Financial Management: Vol. 24: Iss. 2, Article 4.
DOI: 10.1080/10913211.2016.1236568
Available at: https://scholarworks.umass.edu/jhfm/vol24/iss2/4