Purpose – Leverage refers to the use of borrowed capital to finance investment projects. The question of how much debt is optimal for a firm has always been challenging for business managers and scholars alike. Most empirical studies have tried to achieve this, but no conclusive findings have been produced yet. The debt-equity balance changes with the industry, and what is optimal for one industry may not be so for another. Our study aims to determine the impact of leverage on the financial performance of tourism firms in the MENA region. Methodology – To this purpose, we have collected data from a sample of 71 listed firms from the tourism sector. We have employed pooled and static panel regression, using published financial information from 2010 to 2021 in the MENA region. We obtained an unbalanced and cross-sectional panel of 768 firm-year observations from the 71 firms used in the study. Findings – The findings reveal that leverage represented by the debt ratio and equity ratio has a significant negative impact on the financial performance of tourism firms represented by ROA and ROE. Conclusion – The implication of the study findings is that debt levels beyond a certain level can be detrimental to firm performance. Consistent with the trade-off theory, managers must carefully balance the advantages and disadvantages of borrowings over their own capital. Keywords: MENA, tourism industry, performance, profitability, leverage, capital structure. JEL Codes: M41, Z33

Purpose – This paper aims to investigate if there is a significant relationship between corporate ESG (environmental, social, and governance) scores and firm profitability (ROA) and whether this relationship is positive, negative, or neutral. Methodology – The study examines all listed companies from the European tourism industry for which ESG scores are available. The final sample consists of 48 firms from 14 European countries and 258 firm-year observations, obtained through the Refinitiv database for the period from 2010 to 2019. Panel regression analysis was used to examine the relationship between ESG scores (independent variable) and ROA (dependent variable), including financial leverage and firm size as control variables as well. Findings – The results show that ESG scores are negatively related to firm performance as measured by ROA and such a relationship is statistically significant at 5%. Higher levels of ESG scores are associated with lower levels of ROA and vice-versa. Conclusion –The findings suggest that instead of just trying to give the appearance of being ESG-oriented, it is important for companies to actually implement proper ESG practices and standards. Also, in order to promote the adoption of environmental, social, and governance (ESG) practices by companies, it is crucial to educate the public about the long-term benefits of these practices and encourage support for companies that follow these standards. Keywords: ESG score, tourism, profitability, Europe. JEL Codes: G30, Q56, Z33.

Finding the optimal debt-equity mix, where shareholders’ wel­fare and firm value are maximized is the goal of every business organiza­tion. The literature review revealed a broad spectrum of mixed and contra­dictory empirical findings on this topic, suggesting that the debate is far from over. This paper aims to assess the impact of capital structure on the profitability of the tourism industry in the European continent. This study is motivated by the importance that the tourism industry has for the economic development of European countries. The sample includes all European-list­ed firms in the tourism industry. Data is extracted from the Thomson Reu­ters (Refinitiv) database for a period of 10 years, i.e., 2010-2019. Panel data regression is used to determine the impact of the debt-to-assets ratio on the return on assets. The results reveal that the debt ratio has a significant neg­ative impact on ROA, but not on ROE.

This study attempts to provide a general overview on the use of accounting information in Albania. An extensive use of accounting information by different stakeholders would be a testimony of the quality and reliability of accounting information, but the opposite would indicate otherwise calling for improvement in the area of financial reporting. Data are collected by means of a questionnaire. All respondents are certified accountants, members of the biggest and most prominent-certified accountants association in Albania. The questionnaire reveals that in general accounting, information is not heavily used neither by entities’ management nor by other users. Surprisingly, users of accounting information that are closest to the entity use it very little or not at all, raising big questions on the quality and trustworthiness of accounting information. The study is just an initial assessment of the perceived usefulness of accounting information in Albania. The questionnaire is addressed to certified accountants who answer on behalf of their client companies. The study investigates the usefulness of accounting information as perceived by various stakeholders in Albania. Even though this is a well-researched topic worldwide, to the knowledge of the authors there are no such studies in Albania.