“…As mentioned, ROA and ROE measure profitability of hotel companies, whereas stock price can evaluate hotel stock performance. In addition, we follow Boubakri, Cosset, Fischer, and Guedhami (2005), Kesner (1987), Liu and Hung (2006) and Otchere and Chan (2003) to use several accounting/financial ratios to calculate a comprehensive measure, or score, of corporate performance that can represent the overall financial performance of hotel companies. Six accounting ratios, including debt-equity ratio, total asset turnover, current ratio, quick ratio, ROA, and ROE, are used to calculate a comprehensive score based on factor analysis.…”