Financing Decisions and Performance of Italian SMEs in the Hotel Industry

Botta, Marco

doi:10.1177/1938965518816948

Cited by 26 publications

(13 citation statements)

References 107 publications

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“…Частина наукових досліджень присвячена питанням аналізу впливу факторів на прибутковість та фінансовий стан підприємств готельного бізнесу (Arbelo, et al, 2017;Karanovic, et al, 2018;He et al, 2019, Botta, 2019, Mun et al, 2019Casado-Díaz & Sellers-Rubio, 2020;Kalaitan, 2020) Інформаційною основою для проведення аналізу потенціалу готельного господарства Львівщини є дані Державної служби статистики та Державної податкової служби України. У даному дослідженні ми провели аналіз потенціалу готелів та аналогічних засобів розміщування.…”

Section: вступunclassified

Analysis of the hotel industry potential of Lviv region. Prospects for the rural hotels development

et al. 2021

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The hotel industry is one of the most important components of tourism. Its capacity depends on the ability to generate revenue from the full range of tourism services, and, consequently, the success of tourism development at both national and regional levels. Therefore, in this study we would like to assess (1) the hotel sector positioning in the Lviv region by share in the tourist accommodation establishments among the regions of Ukraine; (2) state indicators of Ukraian hotel industry in comparison with similar indicators of the EU member states; (3) the Lviv region position in terms of share in the Ukraine hotel sector among other regions; (4) prospects for the rural hotels development. In the research process we used the systematic review method of scientific publications, Ukrainian legislation, as well as information and analytical materials of international organizations in the tourism field. The hotel sector positioning of Lviv region among other Ukraine regions it is determined on the basis of the studied regions share in the total volume of the country as a whole. The analysis showed that hotels and similar accommodation are the main part of the tourist accommodation establishments potential in the Lviv region. During the study period (2017–2019) the hotel business of Lviv region has a consistently high position among other regions (2nd place). Ranking 2nd in Europe in terms of area, Ukraine ranks 10th in the number of hotels and similar accommodation, and 22nd in the number of beds – among the EU countries, which indicates the insufficient level of the national hotel sector development. The number of hotels in Ukraine is growing slowly. The main reasons for this are: the unstable economic and political situation, the high cost of loans to finance the construction of new hotels, long-term return on investment in hotel real estate and others. The experience of foreign countries with a high level of the hotel sector development shows that state intervention is used to achieve such results. Therefore, in order to develop the hotel sector in Ukraine, it is necessary to develop a program to support it. In particular, in our opinion, fiscal incentives should be introduced (for example, a reduction in the VAT rate for the hotel sector). To increase the tourist flow can be applied the practice of VAT refunds for tourists, reducing VAT rates on passenger transport.

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Section: вступunclassified

Analysis of the hotel industry potential of Lviv region. Prospects for the rural hotels development

et al. 2021

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“…As a result, financially constrained firms may under-perform their peers due to a systematic lower level of investment caused by their inability to raise the required capital. Indeed, Botta (2019a) shows how, in a sample of small and medium-sized firms operating in the hotel industry, failing to adopt an optimal capital structure produces a lower financial performance.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Financial crises, debt overhang, and firm growth in transition economies

Botta

2020

Applied Economics

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We examine the effects of the global financial crisis of 2008 and the European debt crisis of 2011 on the relationship between capital structure, investments, and performance for Eastern European companies. While the existing literature documents how firms' investments are sensitive to the availability of internal funds and to debt holdings, we further investigate whether this investment sensitivity also translates in different levels of performance, and document that capital structure indeed has both a direct and an indirect effect, mediated by the capital expenditure channel. We show that firms with higher financial flexibility experience higher investments and returns on capital. Over-levered firms instead suffer from a debt overhang condition, forcing them to curb investments, and consequently experiencing lower performance.Overall, we provide evidence on the importance of capital structure and financial flexibility on investments and performance, showing the real consequences of the debt overhang condition on firm value creation. Firms should therefore aim at maintaining adequate financial flexibility in order to be able to pursue future profitable investment opportunities, and avoid the under-investment problem arising from a debt overhang situation.

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“…The objective of this paper is to study how firm-specific factors affect the financial performance of newly created small and micro-sized firms located in the Algarve, in the south of Portugal. This study intends to achieve this aim by combining in a single model the potential determinants of financial performance that have been considered in previous research in an isolated matter, such as debts (Botta, 2019), slack resources (Tan & Peng, 2003), sales growth rate (Jang & Park, 2011), asset tangibility (Nunes & Serrasqueiro, 2017) and the firm's size (Sardo et al, 2018). To the best of our knowledge, the approach to this topic focusing only on small and micro-sized firms has still not been explored, which is another contribution of this study.…”

Section: Introductionmentioning

confidence: 99%

Firm-Specific Factors Influencing the Performance of Young Small and Micro-Sized Firms Located in Algarve

Solyukova

Viegas

Pinto

2023

Tourism (Zagreb, Online)

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The main objective of this paper is to study how firm-specific factors affect the financial performance of tourism-related young small and micro-sized firms located in Algarve, Portugal, that started their activity during the last years of the debt crisis of Europe. The sample included 106 Portuguese small and micro-sized firms in the hospitality sector, established between 2012-2014, which remain active in 2019 and financial data from 2015 to 2018 was analysed. Descriptive statistics, group statistics, correlations, and regression model analyses were applied. The dependent variable representing profitability was the return on assets ratio (ROA). The independent variables were short-term, long-term and total debts, slack resources, sales growth, tangibility and size of the firm. A negative relationship between performance and long-term and short-term debts was found, confirming the theory that the most profitable firms tend to borrow less as they do not need external capital. Also, a negative relationship between ROA and tangibility was found, which means that as the level of tangible assets lessens, more intangible assets there are. These results give some hints to help tourism-related small and micro-sized firms located in Algarve take innovation, flexibility, and digitalisation strategies, particularly important during a pandemic crisis.

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Financing Decisions and Performance of Italian SMEs in the Hotel Industry

Cited by 26 publications

References 107 publications

Analysis of the hotel industry potential of Lviv region. Prospects for the rural hotels development

Analysis of the hotel industry potential of Lviv region. Prospects for the rural hotels development

Financial crises, debt overhang, and firm growth in transition economies

Firm-Specific Factors Influencing the Performance of Young Small and Micro-Sized Firms Located in Algarve

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