Does an optimal firm size exist for publicly traded US hotels?

• Kwangsoo Park ^[1] ; Seoki Lee ^[2]
  1. [1] Black Hills State University

     Black Hills State University

     City of Spearfish, Estados Unidos

     
  2. [2] Temple University

     Temple University

     City of Philadelphia, Estados Unidos

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 17, Nº. 2, 2011, págs. 359-372
• Idioma: inglés
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• Resumen

  • This study examines whether or not there is an optimal firm size for publicly traded US hotels. More specifically, the study tests a threestage relationship based on economies and diseconomies of scale: the first stage, in which firm value increases as firm size increases; the second stage, in which firm value remains constant as firm size increases beyond the first stage; and the third stage, in which firm value decreases as firm size transcends the second stage. The study uses the Newey�West heteroskedasticity and the autocorrelation consistent (HAC) standard errors estimation in pooled regression analysis. Findings partially support the proposed relationship.