Poretti, CédricSchatt, AlainJérôme, Tiphaine2024-04-262020-04-292020-01-01https://doi.org/10.7275/bp3n-mw53https://hdl.handle.net/20.500.14394/31050Earnings 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.earnings qualityfinancial leveragehospitality industryinternational studyCorporate FinanceFinance and Financial ManagementFood and Beverage ManagementGaming and Casino Operations ManagementHospitality Administration and ManagementReal EstateTourism and Travelrefereed