Hyun Kyung Chatfield

Returns of Merger and Acquisition Activities in the Restaurant Industry

The restaurant industry experienced numerous merger and acquisition activities in the 1990s. This study examined cumulative abnormal returns for both target and bidding firms of restaurant mergers and acquisitions for the last 20 years. It is found that restaurant targets enjoy significantly positive returns, consistent with most of the literature on merger and acquisition targets. Restaurant industry bidders as an overall group earn slightly positive but not statistically significant returns in this study. The significant positive returns for targets indicate that there may be synergistic gains from mergers and acquisitions.

Returns to Hospitality Acquisitions by Method of Payment

ABSTRACT This is the first study to consider the impact of payment method on announcement period returns in response to a merger and acquisition in the hospitality industry. Much research has been published on the returns to mergers and acquisitions generally, and, in the last ten years, quite a bit has been published on this topic in hospitality journals. But very little has been published about the impact of payment method in hospitality mergers and acquisitions. This paper uses standard event study methodology to determine abnormal returns for a sample of 282 bidding hospitality firms. The results are that an acquisition in the hospitality industry is more likely to be profitable if payment is made with cash. This provides empirical support for the asymmetric information and signaling theories premise that bidding firms will earn positive abnormal returns for cash offers, but returns are not significantly different than zero for stock offers.

EDI and the internet in the e-business era.

This article presents cost effective guidelines to assist hotels of all sizes with the usage of electronic data interchange (EDI) in the Internet e-business era. The evolution of web-based EDI makes it easier for hotels of all sizes to support their business processes with traditional EDI technology, but without the extensive capital outlay in computer hardware and software. This is an attempt to encourage investment in basic EDI technologies before implementing more sophisticated applications. The focus is to allow hotels of all sizes to improve their competitive advantage with successive EDI technological advances.

Bond Yields in the Hospitality Industry

ABSTRACT This paper examines the question of whether there are systematic differences in the cost of debt relative to rating standards between firms in the hospitality industry and firms in other industries. It also examines the impact of make-whole call provisions on the cost of debt. The make-whole call provision is a relatively recent innovation in the corporate bond market. We do find some evidence of a positive hospitality industry impact on bond yields. Additionally, the make-whole call provision appears to be valued by investors, reducing the investor loss from early bond redemption in a period of declining interest rates.

A Multivariate Repeated Measure Analysis of Importance and Performance on College Choice: A Case Study of UNLV Hotel College Students

The purpose of this study was to investigate differences between student’s importance of college choice and their satisfaction of school’s performance of the choice factors between three different resident levels: in-state, out-of-state, and international students. This study first identified five factors of college choice, using factor analysis. Second, students’ perceived importance and their satisfaction of school’s performance on the five factors were measured across the three groups, employing a multivariate repeated measure analysis of variance (ANOVA). Last, the results were compared with importance-performance analysis (IPA) to verify the findings. The study revealed significant differences on the factors between importance and performance among the three groups through interaction, main, and simple effects. The current research suggests a repeated measure of ANOVA as an alternative IPA to understand the differences between importance and performance among different groups. This case study provides college recruiters with detailed insights to attract potential students not only domestically but also internationally.

Job Satisfaction of Hospitality Faculty in the United States: A Current Assessment

This study reports on a survey of faculty at 2-year and 4-year American hospitality programs. The survey was taken in the context of the unfavorable economic conditions that exist today in the United States, which are limiting the budgets of many hospitality programs. Job satisfaction levels of hospitality educators were assessed using a validated survey instrument. Analysis of data received from more than 120 respondents showed 9 job-related factors for hospitality educators, including both intrinsic and extrinsic factors. The results suggest that faculty are less satisfied today than indicated in earlier studies for virtually all aspects of their jobs.

Agency or Stewardship?: The Impact of Leadership Structure on the Debt Financing of Lodging Firms (Leadership Structure on Debt Financing)

This study aims to empirically investigate agency and stewardship theories in the US lodging market by examining the influence of fiscal and non-fiscal leadership structures on the debt financing decisions of lodging firms.,Secondary financial data have been collected for USA-based lodging firms. Subsequently, bivariate correlation, pooled ordinary least square) and endogeneity analyses have been performed on the data.,The findings support the significant influence of some corporate governance attributes on the capital structure of US lodging firms and show the limited applicability of agency and stewardship theories.,Theoretical and managerial implications are suggested in terms of balancing leadership structure attributes from the agency and stewardship theories, the capital structure of lodging firms and the future research.,Despite its importance considering the intensive capital and relatively high liabilities needed for success in the lodging industry, the influence of leadership structure on capital structure has not been examined either empirically or theoretically. Leadership structure attributes, both fiscal and non-fiscal, are included in the study to gain a richer understanding of their influence. The outcomes of the analysis suggest managerial implications for leadership structure as well as theoretical generalizability for agency and stewardship theories within the lodging industry.

Is the Hospitality Industry Ready for the New Lease Accounting Standards

ABSTRACT The days where companies can use off-balance sheet leases are coming to an end. The new lease accounting standards, ASU 842 and IFRS 16, released in early 2016, will be effective, respectively, on December 15, 2018, and January 1, 2019. Under the new standards, virtually all leases will be recognized on a lessee’s balance sheet. Hence, financial statements and ratios of companies that heavily use off-balance sheet leases will be considerably impacted. Our analysis of the off-balance sheet leases by the hospitality industry indicates that hospitality companies do extensively use these operating leases, which amounted to 51% of their assets in 2015. The expected widespread unfavorable impact on a lessee’s debt ratios and interest coverages could also affect a hospitality company’s borrowing rates and debt covenants. Given that the implementation is most likely time consuming, not just costly, the earlier the hospitality companies are prepared for the new standards the better.

Effects of financial exigency on job satisfaction of American hospitality faculty - a research note.

This study reports on the job satisfaction of faculty at American hospitality programs during challenging economic times. Data were collected from educators with a validated survey instrument. Two proposed models were examined using path analysis—one that linked financial exigency to job satisfaction and a second model with four variables mediating financial exigency and job satisfaction. The results showed that tenured faculty satisfaction was significantly affected by financial exigency but that nontenured faculty satisfaction was not affected. Further, only compensation and teaching load were significant mediators between financial exigency and job satisfaction. Implications for hospitality faculty and administrators are discussed.

Investigating the U.S. Job Market for Hospitality Educators Before, During, and After a Period of Economic Downturn: An Overview of 2006–2010

This study analyzes hospitality faculty position announcements that were published in the Council on Hotel, Restaurant, and Institutional Education Communiqué during the period of spring 2006 to spring 2010. It also considers the impact of the economic downturn on the job market for hospitality educators in the United States during this period and further examines available data beyond the downturn. In comparison with past trends, the results indicate that the period of economic downturn and its aftermath possibly had a major identifiable impact on the quantity of hospitality faculty position announcements. Regardless, the findings show a pattern of growing demands on faculty selection criteria. An increasing number of jobs announced during this period required a terminal degree (Ph.D.), teaching experience in two or more subject areas, and relevant industry experience. The emphasis on research experience emerged as a relatively new criterion when compared with the findings of past similar studies.