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This study examines, from a comparative standpoint, the contribution of domestic tourism and international tourism to hotel sales revenue (HSR) and its three key revenue sources: room sales revenue (RSR), food and beverage sales revenue (FBR), and other sales income (OSR), using data from 2003 to 2020. The results indicate that domestic tourism has a greater impact on HSR than international tourism. In addition, we discovered that domestic tourism contributes more to OSR than RSR and FBR, but international tourism contributes more to FBR than OSR and RSR. Notably, panel threshold regression test results indicate that the effects of domestic tourist arrivals (DTA) on hotel sales (HSR, RSR and FBR) show different degrees of sensitivity to economic fluctuations. Domestic tourism's impact on hotel sales (HSR, RSR, FBR and OSR) is less sensitive to economic fluctuations than the impact of international tourism. The RSR's response to tourism is the least sensitive to economic cycles, whereas the FBR is the most sensitive. [ABSTRACT FROM AUTHOR]

Previous research has demonstrated the positive influence of corporate giving (CG) on hospitality firm performance through the lens of value enhancement theory. Interestingly, empirical evidence indicates that this influence extends to all sampled hospitality firms, irrespective of their direct engagement in charitable giving. This phenomenon, termed the 'free rider problem' or 'free riding' in hospitality CG, highlights a scenario where firms refraining from CG benefit from the contributions of others. This study aims to provide a theoretical framework to elucidate the existence of this intriguing phenomenon and its critical implications for the hospitality industry. By addressing the free rider problem in hospitality CG, this research makes a significant contribution to the theoretical development in the hospitality CG literature and offers valuable insights for both scholars and practitioners in understanding and managing CG practices in the hospitality sector. • This study presents a framework to understand free riding in hospitality corporate giving. • The free rider problem occurs when firms benefit from others' corporate giving without contributing themselves. • The model is based on cournot competition with rational, profit-maximizing hospitality firms. • This study provides insights for strategies to mitigate the impact of the free rider problem. [ABSTRACT FROM AUTHOR]

This study investigates the impact of brand and reputational differences on consumer preferences and the effect of these differences on hotel pricing decisions in response to competitors' price promotions. Accordingly, using reputational and brand difference models, the paper explores how hotels should respond to competitor-driven price promotions. Key findings are as follows. It is not advantageous for hotels to match a competitor's price promotion instinctively. Moreover, the hotel's price response is symmetrical in the reputational difference model, but asymmetrical in the brand difference model. Finally, when in determining their price response, hotels should consider the magnitude of their competitors' price promotions, the number of consumers exclusively attentive to price fluctuations, and variations in consumer preferences for different hotels. • This study uses reputational and brand difference models to explore hotel responses to competitors' price promotions. • Reputation variations insignificantly affect price response asymmetry. • The hotel's price response exhibits asymmetry in the brand difference model. • Exclusive consumers, influenced by price, drive the asymmetric price response. • Lower-reputation and non-branded hotels can adjust prices proportionately in response to promotions. [ABSTRACT FROM AUTHOR]

• This study examines insider trading in the U.S. hospitality industry from 2010 to 2016. • The event study methodology is used to examine 21,785 transactions from 165 hospitality firms. • Insider transactions earn abnormal stock returns, implying that outside investors may do well by imitating insider trades. • Insider purchases are found to generate higher abnormal returns than insider sales. • Following the trades of top executives and senior managers can be a useful strategy. Insider trading, defined as executives' trading their own firm's stocks, is often based on private and material information that has the potential to affect the firm's future stock prices. Although trading based on information asymmetry is an important topic in finance, there is limited research on insider trading in the hospitality industry. The structure and the nature of the U.S. hospitality industry warrants exploration of this important issue. Accordingly, this study uses the event study methodology to examine 21,785 transactions from 165 hospitality and tourism firms from 2010 to 2016. Empirical test results show that insider transactions earn abnormal stock returns, suggesting that outside investors may do well by imitating insider trades. Moreover, insider purchases are found to predict higher abnormal returns than insider sales after the event day. Following the trades of top executives and senior managers, especially those in hotels, resorts and restaurants, can be a useful strategy. [ABSTRACT FROM AUTHOR]

• This study examines short selling activity in the hospitality industry. • The study analyzes the demand and supply factors for short selling. • Short interest from 1996 to 2015 in airline, gambling, hotel and restaurant firms is used. • Results from multivariate regression reveal several interesting findings. The objective of the study is to examine short selling activity in the hospitality industry. Using short interest from 1996 to 2015 in airline, gambling, hotel and restaurant firms, we analyze their demand and supply factors for short selling. Results from multivariate regression reveal five interesting findings. First, short sellers short their hospitality stocks because of overvaluation, arbitrage and hedging from stock options and convertible bonds. Second, short sellers follow momentum strategies and short more stocks if there is a large divergence in investors' opinions. Third, for the supply side, the level of institutional ownership has a positive effect on short selling, but its concentration has a negative effect. Fourth, the test results of the sub-periods and individual industries show that the supply side is quite similar but there is a large variation in demand-side variables. Finally, heavily shorted hospitality stocks have poor future one-year performance. [ABSTRACT FROM AUTHOR]

• A theoretical model is proposed to explain the hospitality philanthropy-performance link. • The theoretical model is based on the productivity effect. • An empirical test is performed to see if the link is through the demand effect, the productivity effect or both. • The productivity effect alone explains the positive link in Taiwan. According to value enhancement theory, corporate philanthropy could have a beneficial impact on hospitality firm performance through the demand and productivity effects. This study makes two significant contributions to the hospitality philanthropy-performance literature in two ways. First, the paper proposes a theoretical model of the hospitality philanthropy-performance relationship based on the productivity effect, not the demand effect. The theoretical innovation in this study can inspire future research and enhance the theoretical development in the literature. The second contribution is that the study performs an empirical analysis to test whether the positive link between hospitality philanthropy and performance is through the demand effect and/or the productivity effect. The results of both panel regression and causality tests using data of Taiwan's hospitality firms show that the productivity effect alone explains the positive link between hospitality philanthropy and performance. [ABSTRACT FROM AUTHOR]

This study examined the relationship between host-guest intimacy (HGI) and sharing accommodation satisfaction (SAS) using a novel mixed-method approach of grounded theory techniques, natural language processing, and big data analysis based on 46,765 Airbnb online reviews from 3105 sharing properties in New York. Using Airbnb online reviews, a conceptual model was developed to explore the HGI-SAS relationship and quantify HGI. The findings demonstrated that in positive intimacy, behavior, place, emotion, and culture all have a significant effect on SAS via the generalized method of moments (GMM) regression, whereas only behavior and place in negative intimacy have a significant effect on SAS, demonstrating the importance and distinction of HGI in sharing accommodation. • Using grounded theory to examine the relationship between HGI and SAS. • Developed a conceptual model to explore the HGI-SAS relationship and quantify HGI. • Positive intimacy has a significant effect on SAS. • Behavior, place, emotion, and culture all significantly affect SAS. • SAS is significantly influenced by only behavior and place in negative intimacy. [ABSTRACT FROM AUTHOR]

Procedural corruption is the intentional use of legal-rational authority based on formal rules for personal gain instead of organizational goals. The present study builds on the Opportunity-Motivation-Justification framework to examine the outcomes of procedural corruption in service organizations using the example of the hotel industry. Specifically, it uses a multiple case study strategy to investigate journalistic accounts and employee narratives on critical incidents of managerial authority abuse in four North American hotel properties. This study draws upon the cross-case synthesis technique to find subtle, collective, repeat, and multiple procedural offenses in the North American hotel industry. The investigation results lead to further proposition that effect, frequency, participation, and variety are the four dimensions of procedural service outcomes. These findings imply that service technology could represent an antecedent of procedural corruption. [ABSTRACT FROM AUTHOR]

By extending the hospitality finance research to the area of behavioral finance, this study examines the momentum effect in the hotel industry. This paper determines whether or not there is a momentum effect on hotel stocks in the Taiwan stock market. The results of empirical tests reveal several unique findings. The momentum factor is found to be a significant determinant of hotel stock returns in Taiwan. Specifically, there is a negative momentum effect in the Taiwanese hotel industry for the short horizon (one month), the medium horizons (three, six and 12 months) and the long horizons (18 and 24 months). Moreover, the negative momentum for the medium (three-, six- and 12-month) horizons is consistent and persistent on different hotel firm performance levels and under different stock market conditions. These empirical findings offer a valuable investment strategy for investors who are interested in hotel stocks. [ABSTRACT FROM AUTHOR]

This study makes a unique contribution to the hospitality literature by offering a theoretical model of the link between corporate giving (CG) and hospitality firm performance based on a duopolistic competition model with rational profit-maximizing hospitality firms. The equilibrium outcomes of the proposed model explicitly explain the mixed findings of the relationship between CG and hospitality firm performance found in the previous empirical studies. Specifically, the optimal level of a hospitality firm’s CG is positively related to the total market demand and the competitive advantage of CG, and negatively related to the induced cost of giving practices. Moreover, a positive or neutral relationship between CG and hospitality firm performance depends on whether CG could induce a competitive advantage of brand differentiation and customer loyalty to increase profit. [ABSTRACT FROM AUTHOR]

This study examined the interaction and composition of destination iconic images in DMO-produced destination promotion videos to assess the dynamic construction of tourist destination images based upon place-attachment theory. We classify destination photographs according to three critical dimensions of space-people-activity (SPA) corresponding to three sub-constructs of place attachment and then analyze a destination's image using attribute-associated co-occurrence analysis via the one-to-many protocol. Using Thailand as a case study, this study examined 38 destination advertising videos released between 1993 and 2021 to explore how inter-category connection analysis can help create sense of place and elicit a holistic image of a destination. The findings suggest that DMOs should pay more attention to SPA relationships instead of solely displaying physical settings in promotion videos, thereby mapping affective value, building visitors' place attachment and formulating effective marketing strategies. • This study deconstructs destination image into three critical dimensions of space-people-activity. • This study examines the formation of destination images using attribute-associated co-occurrence analysis via the One-To-Many protocol. • The inter-category connection analysis can help create sense of place and elicit a holistic image. [ABSTRACT FROM AUTHOR]

This study used the quantile regression method to investigate 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. These results suggest that the effect of GTA on hotel equity return is asymmetric and state-dependent, conditional on the distributions of hotel equity return. The study further identified that GTA has a significant influence only on equity returns of hotels with a small size. [ABSTRACT FROM AUTHOR]

Given that the United Nations views environmental, social, and governance (ESG) as a practical framework for anchoring responsible corporate behavior to achieve its sustainable development goals, this study constructs an autoregressive jump intensity trend (ARJI-trend) model to determine if ESG can improve future resilience and create crisis-resilient value for chained-brand hotel corporations from the effects of COVID-19. The findings indicate that the ARJI-trend model indeed captures both the permanent and transitory components of the hotel corporation's ESG performance related to stock return dynamics. When ESG rating is taken into account, the following conclusions emerge: 1) the transitory component of time-varying return variance decreases but the permanent component does not; 2) the hotel corporation portfolios with a lower transitory component experiences a higher return, implying that the hotel corporations with a higher ESG rating appear to be more defensiveness; and 3) with proper asset reallocation, a portfolio centered on strong ESG-conscious hotel corporations is a safe-haven asset during market turmoil. [ABSTRACT FROM AUTHOR]

This study contributes to the hospitality literature by providing a comprehensive investigation of the effects of changes in consumer confidence (Δ CCI ) in Taiwan on hotel stock performance, including hotel sales growth (Δ SALES ), hotel stock returns ( HSR ) and the perceived riskiness of stock cash flows from holding hotel stocks (proxied by the risk of hotel stock returns ( RISK )). Empirical test results reveal that Δ CCI can significantly benefit HSR by stimulating hotel sales growth and by lowering the perceived riskiness of hotel stock cash flows. Quantile regression tests demonstrate that among six economic variables, only Δ CCI can consistently and significantly affect HSR , Δ SALES and RISK at all different quantiles. Changes in consumer confidence are also found to be significant in helping the prediction of HSR , Δ SALES and RISK . Specifically, an increase in Δ CCI can cause an increase in HSR and Δ SALES and a decrease in RISK . [ABSTRACT FROM AUTHOR]

This study makes a unique contribution to the corporate social responsibility literature, both from a theoretical perspective and corporate philanthropy ( CP ) perspective that has been under-researched so far. Specifically, it extends the investigation of the motives of CP to the hospitality industry in the emerging country of Taiwan and is the first examination of the determinants of CP in the hospitality industry based on the value enhancement (VE) and agency cost (AC) theories. Previous studies found that either AC or VE determinants, not both, play a major role in making philanthropy decisions. This study reveal new and interesting findings using the data from 13 publicly traded hospitality companies in Taiwan collected between 1996 and 2011. Panel regression test results show that both VE determinants (labor intensity and profitability) and AC determinants (board size and the ratio of independent directors to total directors) were found to be significant factors in explaining the discretionary behavior of CP in the hospitality industry. Furthermore, the lagged philanthropy-to-sale ratio was also significantly related to CP decisions in the hospitality industry in Taiwan, suggesting that the behavior of CP in the Taiwanese hospitality industry is persistent. The possible explanation is that changing philanthropy pattern may lead to market-adverse expectations and reactions and damage the reputation of companies. [ABSTRACT FROM AUTHOR]

While corporate charitable giving ( CCG ) may have a positive or negative effect on corporate performance (based on value enhancement theory and agency cost theory, respectively), CCG could also have no impact at all. This article tests the extent to which CCG can influence corporate performance of Taiwan's publicly traded hospitality companies. The variable of CCG is defined as the ratio of the total value of corporate giving to total sales revenue. The measures of corporate performance are profitability (return on assets and return on equity), stock performance and Tobin's Q. Panel regression test results reveal that CCG can affect all measures of corporate performance except for stock return. In particular, the impact of CCG on return on assets, return on equity and Tobin's Q is an inverted U-shape, implying that an increased CCG can enhance corporate performance, but as the level of CCG reaches its optimal point, an increase in CCG could have a negative influence on corporate performance. Empirical test results can offer valuable managerial insights for the hospitality industry. [ABSTRACT FROM AUTHOR]

This study examines the effects of advertising expenditure on Taiwanese hotel sales (and profitability), risk and returns. It further tests whether the effects of advertising expenditure on hotel sales (and profitability) risk and returns rely on the business cycle condition. Panel regression test results reveal that the ratio of advertising expenditure to total asset (AD) is significant in increasing hotel sales revenue in terms of occupancy rate ( Occupancy ) and revenue per available room, but is not significant in increasing hotel profitability in terms of return on assets and return on equity. The relationship between AD and Occupancy is found to be curvilinear (an inverted U-shape). Although AD has a negative impact on the risk of hotel stock returns, the effect is not statistically significant. Moreover, AD is found to have no significant impact on hotel stock returns. Finally, the effects of AD on hotel stock returns and risk of hotel stock returns vary significantly in different business cycle conditions. [ABSTRACT FROM AUTHOR]

This study sheds light on the shaping and evolution of package tour supply strategies by examining package tour quality variance under various information conditions using evolutionary game and stochastic processes. The findings indicate that demand elasticity is critical in package tours' quality when the market information is symmetric. In an asymmetric information tourism market, adverse selection and moral hazard are the primary causes of degraded package tour quality. This study develops a compound relief mechanism comprised of stratification, reputation, and punishment mechanisms to address issues with the quality of package tours. The compound relief mechanism can assist policymakers in developing practical market regulations and policies by providing a theoretical basis for package tour quality control. [ABSTRACT FROM AUTHOR]

Incorporating environmental-social-governance (ESG) into a company's operations is an innovation strategy for contemporary businesses and a countermeasure for airline companies under COVID-19's influence. This research employs an autoregressive jump intensity trend (ARJI-trend) model to analyze the effects of COVID-19 and ESG ratings on the stock performance of the U.S. airline industry. We find that the ARJI-trend model captures the short- and long-run impacts of COVID-19 and ESG on stock return dynamics. Moreover, short-run stock return volatility converges to the original equilibrium level faster when a company has a higher ESG score, implying that promoting ESG does offer a defense mechanism to airline companies and that ESG performance is suitable for integration into business operational goals. The results lay the groundwork for understanding how an ESG focus might help airline companies to suffer less of an economic/financial impact during crises such as the COVID-19 pandemic. • U.S. airlines can use environmental-social-governance (ESG) against COVID-19 crisis. • Return volatility converges to the equilibrium faster if company's ESG is better. • ESG characteristics can serve as a non-financial metric for airline companies. • ESG engagement deserves to be integrated into company's management and operation. [ABSTRACT FROM AUTHOR]

This study contributes to the philanthropic giving (PG) research literature by proposing a risk reduction effect of hospitality PG based on value enhancement theory and the capital asset pricing model (CAPM) to develop a theoretical framework, and by conducting empirical examinations to provide evidence of and support for the risk reduction effect. To determine whether PG can reduce the risks of China's publicly traded hospitality firms, the study uses the CAPM to compute the systematic and unsystematic risks of hospitality firms, and conducts dynamic panel regression tests based on the system generalized method of moments. Test results reveal that PG has a significantly negative impact on unsystematic risk but no influence on systematic risk, supporting the risk reduction effect of hospitality PG. Furthermore, this risk reduction effect is asymmetric. Specifically, PG is found to reduce unsystematic risk more during periods of business contraction than during periods of business expansion. • This study proposes a risk reduction effect of hospitality philanthropy giving (PG). • The study uses the capital asset pricing model to compute the systematic and unsystematic risks of hospitality firms. • PG has a negative impact on unsystematic risk but no impact on systematic risk. • PG can reduce unsystematic risk more during periods of business contraction than during periods of business expansion. [ABSTRACT FROM AUTHOR]

As the COVID-19 pandemic has posed grave threats to the financial and physical health of hospitality employees, this research unveils details of the dilemma experienced by hospitality employees during the pandemic, namely, their fear of becoming infected and fired. The research data were derived from a sample of 622 hospitality employees in the U.S. and analyzed using PLS-SEM as a new model of COVID-19 stressors are proposed and tested. The findings show that hospitality employees perceive the pandemic as a traumatic event that elevates their perceived job insecurity and infectious risk. It was also found that both job insecurity and infectious risk lead to increased job stress and turnover intentions, while job insecurity alone is a stronger predictor of turnover intentions. This study is among the first to examine the antecedents and consequences of the dual stressors encountered by public-facing occupations, including hospitality, during the pandemic. • This research examines the dual stressors for hospitality employees during the pandemic. • Job insecurity and infection risk are identified as dual stressors. • The pandemic-induced panic exacerbates the dual stressors. • Both dual stressors lead to increased job stress and turnover intention. • The pandemic is threatening the life and livelihood of the hospitality workforce. [ABSTRACT FROM AUTHOR]

Abstract: This paper contributes to the tourism literature by examining determinants of the Taiwanese tourist hotel industry (THI) cycle. This study uses a Markov-switching model (MSM) proposed by Hamilton (1989) to analyze the Taiwanese tourist hotel industry cycle. The MSM decomposes the tourist hotel industry cycle into two distinct states: high-growth and low-growth (HGS and LGS). The mean growth rate of HGS is 1.5% and the average growth rate of LGS is 0.07% during the period from December 1999 to February 2011. The corresponding standard deviations in the two regimes are 0.008% and 0.038%, implying that HGS is more stable than LGS. Moreover, the probability of staying in HGS is 94% and the probability of remaining in LGS is 65%. The expected durations of HGS and LGS are about 16 and 3 months, respectively. Further, the paper investigates the factors that keep the THI in HGS. Empirical test results show that growth in the international tourism market and industrial production growth rate are two key factors that keep the THI in HGS, but the SARS outbreak in 2003 has had an adverse effect. [Copyright &y& Elsevier]

Abstract: This paper examines asymmetric response of hospitality stock prices to Fed monetary policy actions in bull and bear markets. Empirical examinations comprise two critical steps. First, following Kuttner (2001), this study uses the federal funds target rate surprise as an appropriate identification of Fed monetary policy action. Second, by using a Markov-switching model of stock returns, this study explicitly identifies bull and bear markets. Empirical test results based on an event study framework reveal that the responses of airline, gambling, hotel and travel and leisure index returns to monetary policy surprises vary greatly in bear and bull markets. The response of airline, gambling and hotel index returns is substantially greater and more statistically significant in bear than in bull markets. Moreover, the significant impact of monetary policy surprises on airline, gambling and hotel index returns exists only in bear markets. While travel and leisure index return reacts strongly to federal funds target rate surprises in both bear and bull markets, the response of travel and leisure index return is significantly greater in bear markets. [Copyright &y& Elsevier]

Abstract: Previous research studies reveal that changes in monetary policy can significantly affect hospitality stock returns. This paper makes another contribution by showing that the impact of shifts in the Fed monetary policy regime on US hospitality index returns varies to a great extent in the different stages of business cycle and under different credit market conditions. Shifts in the Fed monetary policy regime are measured by directional changes in the discount rate (DR) and directional changes in the federal funds rate (FFR). In particular, the significant influence of monetary policy regime shifts on hospitality index returns depends on the state of economy. The significant influence of DR exists only during periods of business cycle contraction. In addition, although US hospitality index returns respond significantly to FFR under both business cycle expansion and contraction, the size of the response is substantially larger and more statistically significant during periods of business cycle contraction. Finally, the impact of both DR and FFR on hospitality index returns depends on the credit market conditions, especially when the credit market is tight. [Copyright &y& Elsevier]

Abstract: This paper is an event study analysis of the reaction of daily U.S. hospitality stock prices to announcements of Federal Open Market Committee decisions concerning the federal funds target rate (FFTR). The study first identifies two components of changes in the FFTR (ΔFFTR), namely the expected and the unexpected (or surprise) components. The surprise component that is not yet priced into the market can be calculated from the change in the federal funds futures rate. According to the efficient market hypothesis that stock prices should have already reflected all information available in the market, it is hypothesized that hospitality stock prices should respond only to the surprise component. Test results support the hypothesis. Except for restaurant index, the responses of airline, gambling, hotel and travel and leisure stock indices to the surprise component of ΔFFTR are highly significant. The corresponding responses to the actual ΔFFTR and the expected component, in contrast, are statistically insignificant. [Copyright &y& Elsevier]

Abstract: This study examines the impact of insider managerial ownership on financial performance of publicly traded tourist hotels in Taiwan. Insider managerial shareholding (IMS) includes two different classes of owners: managers and directors (i.e., managers’ shareholding [MAS] plus directors’ shareholding [DIRS]). The indicators of financial performance under consideration are return on assets (ROA), return on equity (ROE), stock return (SR), and Tobin''s Q. In addition to analyzing total insider managerial ownership (IMS), the study splits IMS into two components (MAS and DIRS) and examines each of them, separately. Subsequently, panel regression tests examine the effects of IMS, MAS, and DIRS on financial performance of Taiwanese tourist hotels. Test results suggest that IMS explains ROA, ROE and Tobin''s Q, but not SR. Further, compared to MAS, DIRS has a more significant impact on hotel performance. Specifically, an inverted U-shape represents the effects of IMS and DIRS on hotel performance (ROA, ROE and Tobin''s Q), indicating that both IMS and DIRS have a significantly positive impact on hotel performance up to an optimal point (supporting the convergence-of-interests hypothesis). Further, when IMS and DIRS are greater than their corresponding optimal points, these two factors can significantly deteriorate hotel performance (supporting the entrenchment hypothesis). [Copyright &y& Elsevier]

Abstract: This study uses panel regression tests to examine the response of hotel performance to international tourism development and crisis events in Taiwan. Hotel performance measures are revenue (revenue per available room and occupancy rate), profitability (return on assets and return on equity) and stock performance. The crises were the earthquake on September 21, 1999 (the 9/21 earthquake), the terrorist attacks of September 11, 2001 in the US (the 9/11 terrorist attacks) and the outbreak of Severe Acute Respiratory Syndrome on April 22, 2003 (the SARS outbreak). This study makes four major contributions. First, test results confirm that international tourism development (ITD), proxied by the growth of total inbound tourist arrivals, has a more direct influence on hotel sales and profitability than it does on hotel stock performance. Second, this study identifies that the absence of a strong tie between ITD and hotel stock returns that was found in previous studies is due to the time-varying discount rate caused by investors’ changing expectations for the prospect of future cash flows from holding hotel stocks. Third, this study finds new evidence that while the poor performance of hotel stocks caused by the 9/21 earthquake and the 9/11 terrorist attacks was attributed to the loss of hotel sales revenue, the adverse effect of the SARS outbreak on hotel stock returns is attributed not only to decreased hotel sales revenue but also to the increased discount rate. Lastly, this study is the first to investigate whether the response of hotel stock returns to ITD depends on the state of economy and concludes that the response of hotel stock performance to ITD in business cycle contraction is statistically different from that in business cycle expansion. Further, although the influence of ITD on hotel stock performance is still irrelevant during expansion periods, ITD can significantly enhance hotel stock returns during contraction periods. [Copyright &y& Elsevier]

Abstract: This study investigates the impact of economy and tourism growth on the corporate performance of tourist hotels in Taiwan. The indicators of corporate performance under consideration are occupancy rate (OPR), return on assets (ROA), return on equity (ROE), stock return, and the overall financial performance measured by a comprehensive score (a combined measure of asset management, profitability, short-term solvency or liquidity and long-term solvency based on factor analysis). The effects of changes in the state of economy (real GDP growth rate, ) and tourism growth (growth rate of total foreign tourist arrivals, ) on the corporate performance of tourist hotels are then examined via panel regression tests. Test results show that both and are significant explanatory factors of OPR, but only can strongly explain ROA and ROE. However, neither nor have a significant influence on hotel stock performance. Further, the economic factor is slightly more crucial than the industry factor in describing the overall financial performance in the Taiwanese hotel industry. Empirical findings offer valuable information for government tourism policymakers and tourist hotel owners and managers. [Copyright &y& Elsevier]

Although previous research has shown that servant leaders can inspire their subordinates to perform better, few studies have investigated the mechanisms that influence supervisor-subordinate guanxi (SSG). In line with theories of social exchange, conservation of resources, and social identity, this research proposes a moderated mediation framework testing the links among servant leaders, psychological safety, SSG, and organizational identification. The bootstrap findings from 323 hotel staff in China showed that 1) servant leadership directly promotes SSG and psychological safety; 2) psychological safety mediated the relationship between servant leadership and SSG; and 3) subordinates' positive organizational identification moderated the relationship between psychological safety and SSG. Moreover, the moderated mediation analysis demonstrates that the mediated relationship linking servant leadership with SSG via psychological safety is stronger when subordinates identify closely with their organization. This research sheds light on how servant leaders in the lodging industry can improve SSG. • Servant leadership directly promotes SSG and psychological safety. • Psychological safety has a mediating effect on supervisor-subordinate guanxi. • Organizational identification moderates the relationship between psychological safety and SSG. • Organizational identification moderates the indirect effect of servant leadership on SSG. [ABSTRACT FROM AUTHOR]

Abstract: To understand financing behaviors in the hotel industry, this study used canonical correlation analyses by examining the interrelationships between cross-balance-sheet accounts of hotel companies. The study confirmed that hotel companies followed the four common practices about the cross-balance-sheet interdependencies identified in the other industries. This study also discovered a few unique financing features of the hotel industry: (1) maturity mismatching between property, plant, and equipment (PPE) and short-term liabilities; (2) adjusting the funding sources of inventories according to the internal and external environments; and (3) high dependency of operating assets on stockholder''s equity. This study also explains different financing features across three periods during 1990–2004. The findings are expected to contribute to developing knowledge about the financing behaviors of hotel companies as related to their asset structures. [Copyright &y& Elsevier]

Abstract: This study applied a financial portfolio theory to estimate optimal market mixes to minimize the instability of inbound tourist market demand. An empirical analysis was applied to inbound tourists to Taiwan. The results shed light on diversification in tourism market and offer tourism authorities and policy-makers explicit guidelines for risk management in the destination planning process. Specifically, using optimal mixes with various return/risk options can facilitate a more stable pattern of arrivals from foreign countries. To achieve the Doubling Tourist Arrivals Plan, introduced by the Taiwanese government in 2002, the tourism authorities should take the high-return/high-risk option and shift available resources to Japan. More policy implications are provided to guide tourism authorities and policy makers. [Copyright &y& Elsevier]

This study investigates the link between macro and non-macro explanatory factors and Chinese hotel stock returns. Macro variables include growth rates of industrial production and imports, discount rates, yield spread and inflation rate. In addition, growth rate of total foreign tourist arrivals () was introduced as another critical macro factor that may affect Chinese hotel stock returns, considering a tremendous growth of tourism in China. Empirical results indicated that the impact of was positive, but insignificant. Thus, Chinese hotel stock returns were more sensitive to general macro variables. Non-macro events that could significantly impact Chinese hotel stock returns encompass financial crises, natural disasters, wars, terrorist attacks, political events, and sports mega-events. Discussions and conclusions are provided to guide hospitality investors. [Copyright &y& Elsevier]

Following the investigation of the link between hotel stock returns and macroeconomic factors in the hospitality finance literature, this study further examines (1) the performance of Taiwanese hotel stocks under two various monetary policy environments, namely expansive and restrictive, and (2) the impact of different monetary stringency on the relationship between hotel stock returns and macro variables in Taiwan. Using changes in the discount rate allows us to effectively measure the monetary policy changes and classify the monetary environment as either restrictive or expansive. Empirical results show that hotel stocks exhibited a higher mean return and reward-to-risk ratio during expansive monetary periods. Moreover, the connection between hotel stock returns and macro variables behaved differently under various monetary conditions. In response to monetary policy developments, the implication for hotel stock investors to reallocate their investment portfolios is provided. [Copyright &y& Elsevier]

Abstract: This paper tested the mean reversion behavior of stock prices in the hospitality and other industry sectors towards their fundamental values, namely earnings per share (EPS) and dividend per share (DPS). Cointegration test results showed that DPS is not a good proxy of fundamental values of stock prices in all sectors, while EPS can serve as a good proxy of fundamental values of stock prices only in the hospitality and construction sectors. Further, although hospitality stock prices have diverged away from their fundamental values from time to time, there exists an error correction mechanism in the market, which adjusts hospitality stock prices to return to their fundamental values. We also found that hospitality stock prices driven by their EPS are due to less noise trading and small size in the hospitality industry. Lastly, empirical findings suggest that hospitality stock investors should pay more attention to the underlying performance of hospitality stocks in terms of their earnings per share. [Copyright &y& Elsevier]

Abstract: The severe acute respiratory syndrome (SARS) outbreak in 2003 weakened the Taiwanese economy. The tourism industry suffered the most, experiencing the highest stock price decline (approximately 29 percent) within a month of the SARS outbreak. This research examined the effect of the SARS epidemic on Taiwanese hotel stock price movements using an event-study approach. Seven publicly traded hotel companies experienced steep declines in earnings and stock price during the SARS outbreak period. On and after the day of the SARS outbreak, Taiwanese hotel stocks showed significantly negative cumulative mean abnormal returns, indicating a significant impact of the SARS outbreak on hotel stock performance. Empirical findings could be used to prepare businesses for the similar epidemics, such as a deadly bird-flu epidemic. [Copyright &y& Elsevier]

Abstract: This study contributes to the fields of hospitality and tourism by examining interactions between business conditions and financial performance of tourism firms in both China and Taiwan. We investigate whether the improvement of business conditions enhances financial performance of tourism firms and whether financial success of tourism firms matters to business development. In general, cointegration test results support a long-run equilibrium relationship between the two variables, business conditions and financial performance of tourism firms, and Granger causality test results show that these two factors reinforce each other in both China and Taiwan. This study therefore documents significant contributions of financial success of tourism firms to business development and strengthening of financial performance of tourism firms by business conditions. Some managerial implications are also discussed. [Copyright &y& Elsevier]

Abstract: This study examines the causal relationship between tourism expansion and economic development in Taiwan. A Granger causality test is performed following the cointegration approach to reveal the direction of causality between economic growth and tourism expansion. Test results indicate a long-run equilibrium relationship and further a bi-directional causality between the two factors. In other words, in Taiwan, tourism and economic development reinforce each other. A discussion follows and managerial implications are identified based on the empirical findings. [Copyright &y& Elsevier]

This study examines the effects of executive gender diversity (EGD) and board gender diversity (BGD) on hotel financial performance in China based on the framework of the gender role, agency, and resource dependence theories. This research documents a negative effect of EGD and no significant effect of BGD on hotel financial performance. Moreover, the effect of EGD on hotel financial performance captured by return on equity (ROE) exhibits a U-shaped curve, with the profitability measure bottoming out at 21%. Our analysis also shows that a critical mass of 40% of EGD serves as a positive moderator for the EGD-ROE relationship. Beyond this point, gender-balanced executive groups evade negatives rooted in the gender role theory, enjoy positives drawn in the agency and resource dependence theories, and generate superior financial performance compared to all-male executive groups. This research offers important implications for human resource management and policy and regulation formulation. [ABSTRACT FROM AUTHOR]