Financial Management in the Hospitality Industry: Themes
and Issues

Atkinson, Helen; Jones, Tracy A.

doi:10.4135/9781849200417.n11

Cited by 3 publications

(5 citation statements)

References 16 publications

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“…Hospitality financial management research has grown noticeably since Harris and Brown's (1998) and Atkinson and Jones's (2006) reviews. The current paper has reviewed and synthesized studies published over the period 1998-2009 in the categories of financing, investing, dividend policy, financial condition, and performance.…”

Section: Discussionmentioning

confidence: 99%

“…Little evidence of new theory development in hospitality financial management research was noted in Atkinson and Jones's (2006) work. Our review of past studies highlighted the development of new theories.…”

Section: Discussionmentioning

confidence: 99%

“…However, as Harris and Brown (1998) point out in their review of research and development in hospitality accounting and financial management (with more focus on accounting than finance), some of this work has tended to be inward-looking, with inadequate methodologies and superficial results. Atkinson and Jones (2006) also noted in their review (with more focus on management accounting than finance) that not much progress has been observed in areas highlighted as "innovative" in 1998, and little evidence exists of the development of new theories. Another critique is that studies have tended to replicate mainstream financial research, with the only major difference being the use of a hospitality sample.…”

Section: Introductionmentioning

confidence: 99%

“…While the hospitality industry does share some commonalities with other service industries, some unique operating characteristics necessitate separate examination of particular topics. Since Harris and Brown's (1998) and Atkinson and Jones's (2006) works, hospitality financial management research alone has grown noticeably in terms of diverse topics and sophistication of methodologies. The need for an update motivated us to conduct a review of recent research.…”

Section: Introductionmentioning

confidence: 99%

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Recent research in hospitality financial management

Tsai

Pan

Lee

2011

International Journal of Contemporary Hospitality Management

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Purpose -The purpose of this paper is to review and synthesize published contemporary hospitality financial management research from 1998 through 2009 and provide future research directions. Design/methodology/approach -The authors began their initial literature search by entering into the ABI/INFORM database via ProQuest 19 pre-identified keywords (i.e. debt, financing, ownership) related to the major functions of financial management, namely investing, financing, and dividend decisions, as well as commonly indexed keywords in hospitality finance research. The paper then expanded the authors' literature list through the reference lists of the studies that they initially identified. The authors limited their search to published studies between 1998 and 2009 and within hospitality journals written in English. Findings -The paper identifies 98 published papers that represented the major work and efforts in expanding the body of knowledge in both the theoretical and practical perspectives of hospitality financial management. The major categories of papers include hospitality financing, investing, dividend policy, financial condition, and performance. Areas that warrant further investigation are noted throughout the paper.Research limitations/implications -The papers review provides academics and practitioners an overview of the updated body of knowledge in the field and suggests the need for further in-depth research to extend the literature and prompt better financial decision making for practitioners. Originality/value -Since Harris and Brown's and Atkinson and Jones's reviews of past hospitality accounting and finance studies which mostly focused on the former, hospitality financial management research alone has grown noticeably in terms of diverse topics and sophistication of methodologies. To the authors' knowledge, no updated reviews that focus solely on hospitality finance research have been published in the last 12 years, and the need for such a task motivated them to conduct a review of recent research on this topic.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Recent research in hospitality financial management

Tsai

Pan

Lee

2011

International Journal of Contemporary Hospitality Management

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show abstract

“…Harris and Brown (1998) indicate in their review of research and development in hospitality accounting and financial management that some of this work has tended to be inward-looking, with inadequate methodologies and superficial results. Likewise, Atkinson and Jones (2008) also state in their review that not much progress has been observed in areas highlighted as "innovative", and little evidence exists in the development of new theories. While the hospitality industry does share some commonalities with other service industries, some unique operating characteristics necessitate separate examination of particular topics.…”

Section: Interdisciplinary Research In Hospitality Finance and Accountingmentioning

confidence: 99%

The Valuation Effects of Capital Structure and Earnings Quality on Firms in the Hotel Industry

Chen¹

2020

Preprint

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Similarly, Park and Jang (2013) provide two illustrations that differentiate the service and manufacturing industries. First, in service industries, capital investments in machinery and equipment are relatively small. If service firms lease their facilities, the total capital invested is working capital (Gill, Biger, & Bhutani, 2008). Second, the association between capital structure and strategic choice might produce different outcomes within service industries. This is because the benefits of diversification derived from scale economies could differ between manufacturing and service industries due to differences in investments. Considering these industry characteristics differences, the current study focuses on one service industry to analyze the potential effects of capital structure and earnings management on firm value. Due to the lack of firm-level diversification data and limited research in the hotel industry, I specifically investigate the hotel industry as a representative sample of service industries in this study. The importance of Earnings ManagementAlthough earnings management has been extensively studied in the accounting literature, it may be argued that the importance and prominence of this research topic have increased significantly since the accounting scandals of 2000 and the 2008 financial crisis (Ronen & Yaari, 2008). Regarding 2000, one of the first scandals involved the highly regarded Xerox corporation when the company reported that it had overstated profits by $1.4 billion during the prior 4 years. Subsequently, approximately twenty large and highly publicized scandals followed between October 2001 and the enactment of the Sarbanes-Oxley Act of 2002 (Forbes, 2002). In late 2001, Enron's failure to make proper disclosures concerning various relatedparty transactions and to account for off-balance-sheet transactions resulted in its now infamous bankruptcy filing. Arthur Andersen LLP, which was the fifth-largest accounting firm in the world, collapsed because the company's Dallas office shredded documents pertinent to the Congressional investigation of Enron's bankruptcy. The various governance failures that followed Enron include the widely publicized cases of Global Crossing's and Adelphia Communications Corporation's dubious financial reporting as well as Tyco International Limited's sweetheart loans to executives. The largest collapse was that of WorldCom 2002, with the market value of the company's common stock plunging from about $150 billion in January 2000 to less than $150 million as of July 1, 2002(Cohen, Dey, & Lys, 2005. These multi-billion-dollar financial failures created losses for millions of ordinary investors and shook their faith on the integrity of the capital market and the reliability of financial reporting.

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Management Accounting Research in the Hospitality Sector

Seal¹,

Mattimoe²

2011

Review of Management Accounting Research

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Financial Management in the Hospitality Industry: Themes and Issues

Cited by 3 publications

References 16 publications

Recent research in hospitality financial management

Recent research in hospitality financial management

The Valuation Effects of Capital Structure and Earnings Quality on Firms in the Hotel Industry

Management Accounting Research in the Hospitality Sector

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