Type of Submission
Earnings are a key firm-performance yardstick for investors. The quality of earnings has fascinated researchers and investors alike, as it may be manipulated by a firm's management. This paper studies the relationship between earnings quality and debt levels of firms in the hospitality sector, using a sample of 642 firms from 26 countries for the 2002-2016 period. Results of this study suggests a generally positive relationship between a firm's leverage and its earnings quality in the hospitality sector, particularly for firms incorporated in countries with stronger investor protection. As such, some interesting implications of the leverage-earnings quality relationship are revealed for investors, lenders, and professionals in the hospitality industry.
Poretti, Cédric; Schatt, Alain; and Jérôme, Tiphaine
"Impact of Leverage on Financial Information Quality: International Evidence from the Hospitality Industry,"
Journal of Hospitality Financial Management: Vol. 28
, Article 4.
Available at: https://scholarworks.umass.edu/jhfm/vol28/iss1/4