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.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
