An Investigation of Long-term Debt and Firm Value in the Lodging Industry

Michael C. Dalbor, Seoki Lee, Arun Upneja

Research output: Chapter in Book/Report/Conference proceedingChapter

8 Scopus citations

Abstract

The purpose of this paper is to explore the impact of long-term debt and firm value in the lodging industry. Previous research on capital structure in the lodging industry has been conducted in an attempt to understand what motivates the use of debt. We explore this further by assessing whether or not this debt use translates into increases in firm value. The regression analysis shows that after controlling for size and risk, we find a positive relationship with long-term debt and the value of the firm. Return on assets is negatively related to firm value, but capital expenditures are not.

Original languageEnglish (US)
Title of host publicationAdvances in Hospitality and Leisure
EditorsJoseph Chen
Pages195-204
Number of pages10
DOIs
StatePublished - Mar 20 2007

Publication series

NameAdvances in Hospitality and Leisure
Volume3
ISSN (Print)1745-3542

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Tourism, Leisure and Hospitality Management

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    Dalbor, M. C., Lee, S., & Upneja, A. (2007). An Investigation of Long-term Debt and Firm Value in the Lodging Industry. In J. Chen (Ed.), Advances in Hospitality and Leisure (pp. 195-204). (Advances in Hospitality and Leisure; Vol. 3). https://doi.org/10.1016/S1745-3542(06)03011-6