Examination of Various Financial Risk Measures for Lodging Firms

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

Financial researchers, including those concentrating on the lodging industry, use various financial risk measures for their studies. Examples of those risk measures are beta, earnings variability, bankruptcy probability, debt-to-equity ratio and book-to-market ratio. The purpose of this study is, first, to descriptively investigate various financial risk measures used in the lodging financial literature by performing factor analysis and identifying four distinct risk groups. Second, this study examines the predictive ability of the four risk groups for lodging firm performance. The findings of this study suggest that strategic and stock performance risk factors better represent a lodging firm's financial risk than do bankruptcy and firm performance risk factors, and also, ROA than ROE better estimates lodging firm performance in terms of their relationships with financial risk factors.

Original languageEnglish (US)
Pages (from-to)255-271
Number of pages17
JournalJournal of Hospitality and Tourism Research
Volume32
Issue number2
DOIs
StatePublished - Jan 1 2008

Fingerprint

firm
examination
risk factor
bankruptcy
performance
debt
factor analysis
equity
lodging
Lodging
Financial risk
Risk measures
Risk factors
Firm performance
indebtedness
market
industry
Group
Bankruptcy
ability

All Science Journal Classification (ASJC) codes

  • Education
  • Tourism, Leisure and Hospitality Management

Cite this

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Examination of Various Financial Risk Measures for Lodging Firms. / Lee, Seoki.

In: Journal of Hospitality and Tourism Research, Vol. 32, No. 2, 01.01.2008, p. 255-271.

Research output: Contribution to journalArticle

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