Earnings Predictability of the Greek Hospitality Industry During the Crisis

Panagiotis E. Dimitropoulos (), Ourania Vrondou and Konstantinos Koronios
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Panagiotis E. Dimitropoulos: University of Peloponnese
Ourania Vrondou: University of Peloponnese
Konstantinos Koronios: University of Peloponnese

Chapter Chapter 43 in Smart Tourism as a Driver for Culture and Sustainability, 2019, pp 647-658 from Springer

Abstract: Abstract The aim of the present research is to explore the issue of earnings predictability of a sample of hospitality firms before and after the burst of financial crisis in the Greek economy in 2011. Earnings predictability is considered as a prominent feature of accounting quality and has several implications for investors. For this reason we utilized a sample of organizations registered on the Greek chamber of commerce during the fiscal years 2004–2007 (pre-crisis period) and 2011–2013 (post-crisis period). Those firms were operating on the hospitality and food services sectors, leading to 343 observations for analysis. Regression analysis pointed out that the cash flow component of earnings is a more significant determinant of future earnings relative to accruals. Also the persistence of the cash flow component of earnings has decreased after the burst of the crisis and this is attributed to the lower levels of earnings predictability during that period. Our study adds to the existing literature on earnings predictability and persistence of the hospitality industry, suggesting fruitful policy indications.

Keywords: Hospitality industry; Food services corporations; Earnings predictability; Crisis; Greece (search for similar items in EconPapers)
JEL-codes: G32 G34 M10 M21 M41 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-03910-3_43

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DOI: 10.1007/978-3-030-03910-3_43

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