The Liquidity Crisis: Evidence from the US Hospitality Industry

Michaël Dewally, Yingying Shao and Dan Singer

Tourism Economics, 2013, vol. 19, issue 3, 545-563

Abstract: This study examines the stock performance of firms in the hospitality industry from 2000 to 2010, focusing on the sector's performance surrounding the liquidity crisis of 2008. In addition, the authors investigate the impact of the liquidity crisis on the firms' capital structure. They find that the sector performed well compared to Standard & Poor's S&P 500 index over the entire period but most notably during expansion sub-periods, and that the restaurant subsector performed better than the casino or hotel sub-sectors during the crisis. They further find that capital-intensive hospitality firms responded to the liquidity crisis by increasing their financial leverage and depleting their cash holdings.

Keywords: hospitality; stock performance; liquidity crisis; capital structure (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:19:y:2013:i:3:p:545-563

DOI: 10.5367/te.2013.0214

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