Post-merger stock performance of acquiring hospitality firms

• Jing Yang ^[1] ; Woo Gon Kim ^{[2] [3]} ; Hailin Qu ^[1]
  1. [1] Oklahoma State University

     Oklahoma State University

     Estados Unidos

     
  2. [2] Florida State University

     Florida State University

     Estados Unidos

     
  3. [3] Kyung Hee University

     Kyung Hee University

     Corea del Sur

     

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 16, Nº. Extra 1, 2010 (Ejemplar dedicado a: Special Focus: The Economics of Tourism – New Directions), págs. 185-195
• Idioma: inglés
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• Resumen

  • This study examines the long-term post-merger stock performance of acquiring hospitality firms between 2000 and 2006 in the USA.

    The Jensen measure is used to investigate the long-term financial performance of acquiring hospitality firms. A sample of 15 hospitality companies with 8 lodging REITs and 7 hotel/casino companies is analysed. The companies' stock performances are compared against indices of related hotel and REITs sectors and against the S&P 500 index. The study generates mixed findings. The results showed significant positive gains for the acquiring firms when compared to the S&P 500 index; yet, the acquiring firms failed to generate significant gains when compared to sector indices. Furthermore, the REITs firms performed less well than the hotel/casino firms when compared against both market and sector indices.