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Supplemental Material for Tang poetry and tourism: Cultural effects after 1000 years by Hung Wan Kot, Ming-Hsiang Chen, Ching-Hui (Joan) Su and Yu-Xia Lin in Tourism Economics

Supplemental Material, sj-pdf-1-teu-10.1177_13548166211025335 for Nonlinear effects of board characteristics on China’s hotel firm performance by Chunmei Liang, Ming-Hsiang Chen, Di Zhu, Hung Wan Kot and Zhandong Yang in Tourism Economics

Supplemental Material, sj-pdf-1-teu-10.1177_13548166211022423 for Do hotel industry operations deteriorate air quality? by Liang-Ju Wang, Ming-Hsiang Chen, Zhandong Yang and Ching-Hui (Joan) Su in Tourism Economics

This study investigates how inbound tourism market growth proxied by the growth rate of total foreign tourist arrivals (GTA) affects the growth rate of sales (GS) and financial performance of hotel firms in Taiwan. The ordinary least squares estimation results of panel regression test revealed that GTA significantly affects GS, but has no significant effect on financial performance (proxied by hotel equity return). However, quantile regression tests revealed new and interesting results. GTA has a significant effect on GS at the different quantiles of GS. In comparison, although hotel equity return was not significantly related to GTA at the median and high quantiles, the effect of GTA on hotel equity return was statistically significant at the low quantiles.

Historical data for the period from January 2, 1973 to May 30, 2008 show that U.S. airline, hotel, restaurant, and travel and leisure sector indices underperformed the market portfolio (S&P 500) in terms of the Sharpe ratio. This result suggests that simply buying and holding hospitality sector stocks is a poor investment strategy. It is necessary for hospitality stock investors to find a method of improving their investments in U.S. hospitality sector stocks. This study offers a timing strategy for investing in U.S. hospitality sector stocks. Directional changes in the Fed discount rate signal when to buy or sell stocks of different hospitality sectors. Accordingly, a timing strategy is formulated and its performance relative to a passive buy-and-hold (market portfolio) strategy is examined with five risk-adjusted performance measures. Empirical evidence derived from the daily trading data over a 35-year period generally supports the superiority of the proposed timing strategy for investments in hotel, restaurant, and travel and leisure sector stocks over the buy-and-hold strategy based on various risk-adjusted performance evaluation methods.

This study contributes to the hospitality literature by providing a comprehensive investigation of the effects of changes in consumer confidence in Taiwan on hotel stock performance, including hotel sales growth, hotel stock returns and the perceived riskiness of stock cash flows from holding hotel stocks (proxied by the risk of hotel stock returns).