THE IMPLICATIONS OF FINANCIAL CONSTRAINTS: AN EXPLORATORY STUDY AMONG LODGING FIRMS IN U.S.A
Journal Title: GeoJournal of Tourism and Geosites - Year 2018, Vol 23, Issue 3
Abstract
The purpose of this exploratory study is to analyze the nature and implications of financial constraint problems in the American lodging sector. For this purpose, the lodging firms’ financial performance measures, such as EBITDA, sales, sales growth, return on assets, and profit margin are examined to compare the extent to which financing, investment, dividend, and cash holding policies diverge between financially constrained and unconstrained lodging firms. The results show that financially constrained firms are smaller in size and value, have lower cash, make less investments, pay lower dividends, generate lower revenues, some of which contradict the findings in mainstream corporate finance literature, where higher cash holdings and better performance were reported for financially constrained firms. Although these firms have negative return on assets and profit margin, they have higher financial leverage and promising growth opportunities. Managerial implications are discussed within the realm of financing, dividend, investment, and cash management policies.
Authors and Affiliations
TOANOGLOU Michalis
Keywords
Related Articles
- EP ID EP407574
- DOI 10.30892/gtg.23305-319
- Views 82
- Downloads 0
The Effects of Major Sport Event Leveraging for Tourism and Destination Branding: The Case of South Africa as an Emerging Destination
Emerging nations with transitioning or newly transformed brands are increasingly using sport as a branding platform to generate and communicate strong and coherent brands. This is done in acknowledgement of sport as a po...
BUSINESS TOURISM IN CHINA. THE CASE OF GUANGZHOU
This paper aims at studying the business tourism that affects this economically emerging country, with special regard to the business tourism in Guangzhou (better known as Canton), its influence on urban economy and its...
VISUALIZATION OF MALAY TRADITIONAL FOOD: EMOTIONAL EXPRESSION OF THE IMMIGRANTS IN MALAYSIA
Adapting to the new home settlement has significant implications on psychological dimension. This study aims to examine the emotional expression of the immigrants towards the Malay traditional food - the cultural heritag...
Tourism Silence in Geomorphosites: A Case Study of Ali-Sadr Cave (Hamadan, Iran)
Abstract Geotourism is one of the branches of tourism which is based on knowledge of geomorphosites and special geomorphic perspectives and by combining the cultural, historical and ecological heritage, it offers potenti...
UNDERSTANDING SUSTAINABILITY, CORPORATE SOCIAL RESPONSIBILITY AND RESPONSIBLE TOURISM IN LITERATURE VS PRACTICE
This paper provides evidence of the gaps in literature vs practice with regard to three sustainability and tourism related concepts: environmental sustainability, corporate social responsibility, and responsible tourism....