Chun-Hung (Hugo) Tang

Simultaneous Impacts of International Diversification and Financial Leverage On Profitability

This study examines international diversification and financial leverage in a simultaneous equations model to understand how they affect profitability after accounting for the endogeneity between strategic and financial decisions. An analysis of hotel companies showed an inverted U-shaped relationship between financial leverage and profitability, implying an optimal leverage pattern for maximum profitability. The study also found that international diversification significantly, but only indirectly, influences the profitability of hotel firms through the moderating role of leverage. This indicates that financial leverage is more closely related to profitability than international diversification. However, the results also suggest that the effect of international diversification still needs to be considered when making financial decisions.

Does International Diversification Discount Exist in the Hotel Industry

The primary objective of this study was to investigate the value of international diversification in hotel firms. The results show that although diversification discounts exist, the relationship between international diversification and excess value is curvilinear (U-shaped), suggesting that highly diversified hotel firms could still benefit from international diversification. The comparison between absolute market premium (excess market value) and relative market premium (excess Q) also indicates that international diversification can increase the value of intangible assets, but a firm’s ability to leverage its intangible assets through international diversification differs because of industry characteristics. Implications for the hotel industry are also discussed.

Hedging Weather Risk in Nature-Based Tourism Business An Example of Ski Resorts

For nature-based tourism businesses, unpredictable weather patterns impose not only operational challenges but also financial costs. With the increasing volatility of weather patterns and the subsequent financial impacts, managing weather risks has become an essential component for increasing the company value of nature-based businesses, such as ski resorts. The primary objective of this study is to show that weather derivatives can effectively reduce the cash flow volatility of nature-based tourism businesses. Using a ski resort as an example, our Monte Carlo simulations reveal that snowfall forwards could reduce ski resorts’ cash flow volatility up to 25.8%. This hedging strategy is also applicable for other nature-based businesses, such as beach resorts and golf courses.

Investigating Children’s Role in Family Dining-Out Choices: Evidence From a Casual Dining Restaurant

This study investigates children’s influence over parents with regards to the selection of family dining-out options. To further understand the connection between children’s influence on family dining and practical behaviors, this study examined children’s roles in relation to family communication patterns. Additionally, children’s demographic characteristics were examined as predictors influencing family dining-out choices. The context of this study was casual dining restaurants, a popular destination for family dining, vis-a-vis Taiwanese family consumers. The results show that mothers play a dominant role in the family dining-out decision-making process, and that children’s influence is similar to that of fathers in deciding on the type of restaurants, the specific restaurant, and the order of food items while at a restaurant. Additionally, teenage children have more influence than fathers. This study offers practical implications for foodservice operators in the development of family-friendly services, and in the development of future marketing strategies.

Investigating Resort Attribute Preferences of Chinese Consumers: A Study of the Post-1980s and their Predecessors

Chinese travelers have become a priority market source and segment, particularly for resort vacationing, the rising star of the hospitality industry. Using survey data collected from recent resort visitors, the results show that the overall Chinese resort market is relatively homogeneous. The Post-1980s share similar resort preferences with prior generations, such as short stays, limited interest and engagement in onsite activities, and a strong emphasis on intangible hotel-related attributes. In explaining the unique Chinese resort market, the linkage between personal values and resort attribute preferences is investigated. The results suggest personal values associated with the Chinese traditional culture exert confounding influences on Chinese consumers’ consumptive preference.

Does Political Ideology Play a Role in Destination Choice

This study attempts to bridge the research fields of politics and destination choice through testing political ideology’s effect on leisure domestic U.S. destination choice. Both the travelers and the states visited were characterized by their reported and actual political ideological standings on a liberal / conservative scale. Included in the inferential tests as control variables were destination choice determinants such as advertising, distance, weather, etc. Through the comparison of Akaike Information Criteria (AIC) and Schwartz Criteria (SC) scores, political variables were shown to improve the model fit of destination choice models as opposed to demographic variables. Furthermore, analysis of covariance (ANCOVA) tests showed that reported political ideology, instead of actual political ideology, held an effect on their destination choice. Suggestions are also provided for destinations to ameliorate their position within the marketplace through operational and marketing initiatives.

Employee Satisfaction and Long-Run Shareholder Returns

This study empirically tests whether there are differences in the employee satisfaction premium among people- and possession-processing service firms, information-processing service firms, and goods-producing firms. The employee satisfaction premium is measured using the long-run abnormal returns of firms with high employee satisfaction ratings, adjusted for industry and size effects. Results show that the employee satisfaction premium is higher for information-processing services than for people- and possession-processing services. There is no significant difference between people- and possession-processing service firms and goods-producing firms. This finding suggests that employee satisfaction may create higher value for shareholders when it is realised through information-processing services rather than people- and possession-processing services.

Research Note: The Marketing—Finance Interface — A New Direction for Tourism and Hospitality Management

For the last several decades, marketing research and finance research have developed with little interconnection. Traditionally, marketing research has emphasized the product market and finance research has focused on firm profitability and shareholder value. However, contemporary management strategies increasingly seek to enhance profitability and shareholder value via marketing strategies, which suggests the need for further exploration of the connections between marketing efforts and financial performance. Despite this increased attention, little research in the academic fields of tourism and hospitality has focused on bridging marketing and finance. Thus, the main purpose of this study is to introduce the concept of the marketing–finance interface and to explain possible applications of the concept in tourism and hospitality management.

Examining the Personal and Institutional Determinants of Research Productivity in Hospitality and Tourism Management

ABSTRACT The transition toward a post-capitalist knowledge-oriented economy has resulted in an increasingly competitive academic environment, where the success of faculty is dependent on their research productivity. This study examines the personal and institutional determinants of the quantity and quality of the research productivity of hospitality and tourism management faculty in US institutions. A survey of 98 faculty found that a different set of determinants impact the quantity and quality aspects of research productivity. Also, institutional determinants were found to play a larger role, indicating the need for administrators to strive for a culture that is supportive of and an infrastructure that is conducive to their faculty’s research success. The authors use the field of hospitality and tourism management as a case study to develop a holistic and cohesive framework for knowledge worker productivity that can guide the evaluation, hiring, and development of researchers.