Does an Optimal Firm Size Exist for Publicly Traded US Hotels?

Kwangsoo Park and Seoki Lee
Additional contact information
Kwangsoo Park: College of Business and Technology, Black Hills State University, USA
Seoki Lee: School of Tourism and Hospitality Management, Temple University, Speakman Hall, 1810 N 13th Street, Philadelphia, PA 19122, USA

Tourism Economics, 2011, vol. 17, issue 2, 359-372

Abstract: This study examines whether or not there is an optimal firm size for publicly traded US hotels. More specifically, the study tests a three-stage relationship based on economies and diseconomies of scale: the first stage, in which firm value increases as firm size increases; the second stage, in which firm value remains constant as firm size increases beyond the first stage; and the third stage, in which firm value decreases as firm size transcends the second stage. The study uses the Newey–West heteroskedasticity and the autocorrelation consistent (HAC) standard errors estimation in pooled regression analysis. Findings partially support the proposed relationship.

Keywords: optimal firm size; firm value; economies of scale; diseconomies of scale; Tobin's Q; US hotels (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2011.0042 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:17:y:2011:i:2:p:359-372

DOI: 10.5367/te.2011.0042

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().