The Impact of Capital Structure on Firm Performance in the U.S. Hospitality Industry
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This study was aimed to investigate the impact of capital structure on firm performance in the U.S. hospitality industry. In order to accomplish this objective, we examined the relationship between leverage and Tobin’s Q, controlling for firm size, tangibility, growth, systematic risk, and unsystematic risk. After examining a panel data set of financial information obtained from 238 publicly traded US hospitality firms between 1983 and 2019, this study provides evidence that the leverage has a positive and highly significant relationship with Tobin’s Q. The results generally support the trade-off theory of capital structure, implying that using debt as a means of financing can be a strategically managed means for creating and maintain market value in the hospitality industry.
Abstract
This study was aimed to investigate the impact of capital structure on firm performance in the U.S. hospitality industry. In order to accomplish this objective, we examined the relationship between leverage and Tobin’s Q, controlling for firm size, tangibility, growth, systematic risk, and unsystematic risk. After examining a panel data set of financial information obtained from 238 publicly traded US hospitality firms between 1983 and 2019, this study provides evidence that the leverage has a positive and highly significant relationship with Tobin’s Q. The results generally support the trade-off theory of capital structure, implying that using debt as a means of financing can be a strategically managed means for creating and maintain market value in the hospitality industry.
참고문헌 (41)
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