Murat Kizildag

M‐learning: next generation hotel training system

Purpose – This paper aims to explore whether there is a need for a mobile learning (M‐learning) system and what types of mobile applications will be appropriate for each department at a hotel. It focuses on addressing three key questions: how can a hotel utilize mobile devices for training purposes in each area? What kinds of features or functions would hotel employees like to see on the mobile device? Are there any differences in the M‐learning acceptance level of the participants based on their demographic factors or previous experience with mobile usage?Design/methodology/approach – Ten experts in the hospitality academia and industry participated in this qualitative research. This study used snowball sampling as a selection strategy.Findings – This study found there are various ways to utilize mobile devices for hotel employee training in different departments. Housekeeping, room service, restaurant, and other customer‐service sectors were suggested as good areas to use mobile devices for training. Be...

Financial leverage phenomenon in hospitality industry sub-sector portfolios

Purpose – This paper aims to seek answers to a primary question: “How much do divergent leverage factors account for fluctuations in time-varying financial leverage in leading hospitality sub-sectors decomposed by four exclusive sub-portfolios?” In the path of seeking answers, this paper investigated the effects of both firm-specific and macroeconomic indicators to firms’ varying financial leverage in those primary sub-sectors overtime. Design/methodology/approach – In each sub-sector portfolios, firms were sorted based on market-to-book values (Mktbk it ) with median breakpoint percentiles. For hypothesis testing, this paper constructed panel regression models with firm fixed-effects to layout fluctuant financial leverage phenomenon engaged with a set of 11 leverage factors in each Mktbk it sorted sub-sector portfolios. Findings – Results exhibited assorted evidences. The bottom line was: firms with different market capitalization rates in each portfolio acted differently in regard to the magnitude of fi...

Corporate governance, ownership structure, and credit ratings of hospitality firms

This study examines interrelated connections of corporate governance, ownership structure, and credit ratings. From the agency relationship perspective, the study analyzes this multiple association by accounting for firm-specific and ownership characteristics for the period between 1990 and 2007. In this context, logistic functions are used in regression models to predict the probable outcomes of these multiple relationships. Primary findings of this study revealed that hospitality firms with higher anti-takeover provisions (less shareholder power) enjoy higher credit ratings. Findings also revealed high coefficients of Gompers, Ishii, and Metrick (2003) index (the GIM index), suggesting that hospitality firms have strong governance provisions, reduced agency conflicts, and higher chances of getting better credit ratings.

Underlying factors of ups and downs in financial leverage overtime

We present new stylized facts on the underlying reasons of US hospitality and tourism firms’ fluctuating levels of financial leverage during the period 1990–2015 using comprehensive micro- and macro-level accounting data overtime. To characterize this puzzling phenomenon, we quantified firm-specific and macroeconomic parameters and a diverse set of leverage proxies at various time frames with various structures. We further took account of the recent economic upheaval in our analyses so that we can compare firms’ leverage behavior as “before” and “after” the major economic turmoil in 2007–2009 periods. The primary themes of our arguments were that firm-specific leverage factors significantly influenced short-term leverage, while long-term leverage was mostly determined by macroeconomic indicators. Beyond that, book leverage was more favorable across firms than market leverage. Last, hospitality and tourism firms substantially extended their borrowing capacities, aggressively grew their leverage ratios, and dramatically increased collateral values leading to lower cost of borrowing due to relaxed lending standards in the aftermath of the recent upheaval. Our article complements previous work by examining whether leverage factors demonstrate discrepancies from the prior findings and by proposing rigorous industry-specific outlook and solution for the financial leverage literature.

Engaging Generation Y to Co-Create Through Mobile Technology

ABSTRACT This study examines factors that entice Generation Y consumers to engage in co-creation activities with firms using mobile technology. Based on the diffusion of innovation theory, this study develops a model that examines the antecedents of the engagement that leads to the co-creation of value using mobile technology. A survey method is used to test the proposed relationships with 689 valid responses. Results indicate that Generation Y consumers are more motivated by their peers and other social factors. Specifically, acquiring solid interpersonal and peer networks, and engaging in informal communications is paramount to Generation Y when engaging in co-creation. Other factors, such as ease of use of technology and consumer innovativeness, also affect the tendency of this cohort to engage in co-creation activities through mobile platforms. Overall, the structural model results offer a better understanding of Generation Y consumers’ engagement in value co-creation through mobile technology, as well as service innovation design and delivery.

Who Are the Bulls and Bears in Global Lodging Markets

This article looks at the values of market-based equities (common stocks) based on the relative investment valuation, analyzed with several earnings multiples in global lodging markets in 2014. To be specific, we compare the value of various common stock portfolios sorted for four geographical regions with those relative value investment metrics so that we can make a solid judgment about bullish and bearish markets demonstrating investors’ confidence or stagnancy, anomalies in prices indicating under and overvalued stocks, and outperforming lodging portfolios in global markets. Common stock prices in portfolios are standardized, utilizing earnings parameters such as Current Price/Earnings Ratio (PE) and its variants (Trailing and Forward PE), Price/Earnings to Growth (PEG), and The Market Value of Debt and Equity free of Cash-to-EBITDA (Value/EBITDA). Linking the relative value with earnings proxies and the stock portfolios, which are extracted in a homogeneous industry but are sorted from heterogeneous regions, primary findings of this study reveal that western and eastern markets have outperformed the Latin markets in regard to future earnings estimate, earnings growth, and excessive returns from the invested capital.

Estimating Cost of Equity in the Restaurant Industry: What IS Your Required Rate of Return?

ABSTRACT Accurate estimation of cost of equity is critical when making capital investment decisions to allocate valuable corporate resources. While the importance of proper estimation of required rate of return of an investment project is well documented, challenges surrounding estimation of the cost of equity still abound. This paper empirically evaluates the viability of common cost of equity models to estimate required rate of return for the U.S. restaurant industry for the 1996–2010 period. The full model, which consists of five risk factors, emerges as the soundest cost of equity model for the U.S. restaurant industry. We recommend that future studies assess the performance of cost of equity models in other countries and other segments of the hospitality industry.

What do we know about social media and firms’ financial outcomes so far?

Purpose This paper aims to understand the emergence, the revolution and the relevant knowledge of academic research concentrating on social media (SM) and hospitality and tourism firms’ financial performance. The authors not only identified the gaps and critical issues in research but also re-conceptualized profound directions for the future research in technology and finance in the hospitality and tourism field. Design/methodology/approach This study adopted an in-depth review analysis to investigate and review previous scholarly papers published in hospitality, tourism and hospitality and tourism journals from January 2011 to the present. The authors thoroughly analyzed and reviewed peer-reviewed/refereed, blind-reviewed, full-length published articles and working papers within SM and hospitality firms’ financial performance. Editor notes, prefaces, research notes, industry articles, internet publications, conference preceding, books and book chapters were excluded. Findings Having examined the empirical content of 26 peer-reviewed scholarly articles, the authors clearly observed that none of the papers went beyond analyzing the effect of SM on hotels’ revenue per available room, revenues, net profit, average daily rate, occupancy rates, net operating income, etc., and all papers ignored the analysis of many critical financial proxies. Research limitations/implications This critique and review paper is limited to the relationship between SM and firms’ financial performance within the hospitality and tourism context. Practical implications This review provides a blueprint to guide future research, facilitate knowledge accumulation and create a new understanding and awareness in practice as well as SM and financial performance research. Social implications This paper complements and adds to previous work by demonstrating various aspects, evidences, findings and inferences regarding the association between online SM platforms and firms’ financial performance and by proposing rigorous abstract and specific future extensions to both practice and discipline-specific knowledge. Originality/value There is an absence of the most updated review study of published papers on SM and hospitality and tourism firms’ financial performance. Although how SM contributes to firms’ financial performance is clear to academicians and industry professionals, no solid consensus or theoretical certainty about what the authors know and do not know has been achieved.

Marriott Starwood merger: what did we learn from a financial standpoint?

The purpose of this paper is to measure and observe stock market and investor reactions (benchmark adjusted cumulative abnormal returns (CARs)) to the announcement of Marriott’s acquisition of Starwood and related merger and acquisition (M&A) news and related activities over a two-year period.,Empirical models and quantifications were developed and tested through event study analysis to test the Marriot-Starwood M&A news and related activities and to observe the abnormal stock return patterns. Several data sources were employed including Factiva by Dow Jones, Wall Street Newspaper, CRSP/COMPUSTAT merged files, and ValueLine Research.,This paper provides financial insights and outcomes of pre-, during, and post-Marriot-Starwood merger. While equity returns to Starwood were mostly flat, Marriott experienced negative returns around the acquisition announcement and anytime a news article appears following the announcement. However, performance proxies showed that Marriott’s shareholders gained superior buy and hold returns following the acquisition in the long run.,Short-term event study methodology might be less than perfect in examining the stock returns to acquisitions. Therefore, future research is encouraged to test and observe Marriot-Starwood merger using longer time periods with predictive analysis to check the further usability of the results.,The study’s findings practically signal that overreaction in the short term is followed by a correction with an improvement in returns and sales performance of Marriot. In the majority of the acquisitions, integration process is not planned until after the acquisition announcement or the deal completion.,This paper contributes to the existing literature by demonstrating the financial issues, challenges, and outcomes of the biggest merger in the history of the global lodging industry.

An empirical investigation on loan applications and fear of rejection of external financing in the foodservice industry

ABSTRACT This article examines the loan application decision patterns of small-cap foodservice firms and the causes of these firms’ discouragement (fear of rejection) in relation to their external finance-seeking efforts. We utilize information and data collected by the Survey of Small Business Finances on a variety of aspects related to small-cap foodservice firm owners and firms, including market-lender characteristics, use of financial services, and income and balance sheet information in the United States. Our primary findings reveal that sufficient liquidity and owner net worth reduce external finance seeking. In addition, firm credit quality and owner minority status increase discouragement toward external finance seeking, while education reduces fear of rejection.