Off-campus UMass Amherst users: To download campus access theses, please use the following link to log into our proxy server with your UMass Amherst user name and password.

Non-UMass Amherst users: Please talk to your librarian about requesting this thesis through interlibrary loan.

Theses that have an embargo placed on them will not be available to anyone until the embargo expires.

Access Type

Open Access

Document Type

thesis

Degree Program

Hotel & Tourism Management

Degree Type

Master of Science (M.S.)

Year Degree Awarded

2010

Month Degree Awarded

February

Keywords

Hospitality industry, Fama& French model, risk, return, diversification, labor

Abstract

Calculating the expected return has been a longstanding issue in the finance. There is a positive correlation between the undertaken risk and excess return (or loss) but numerous variables need to be considered. This study builds on the Fama and French formula and adds factors unique to the hospitality industry such as labor cost and diversification in order to get results that are a tailored to the hospitality industry. Active hotel and restaurants companies (SIC 7011 and 5812 respectively) in the 2000-2009 period were analyzed in separate samples. The labor cost improves the explanatory on both samples and the diversification proxy was significant in the hotel sample. Based on the results suggestions for further research were made.

DOI

https://doi.org/10.7275/1089523

First Advisor

Atul Sheel

Download
COinS