The liquidity crisis: evidence from the US hospitality industry

• Autores: Michaël Dewally, Yingying Shao, Dan Singer
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 19, Nº. 3, 2013, págs. 545-563
• Idioma: inglés
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• Resumen

  • This study examines the stock performance of firms in the hospitality industry from 2000 to 2010, focusing on the sector�s performance surrounding the liquidity crisis of 2008. In addition, the authors investigate the impact of the liquidity crisis on the firms� capital structure. They find that the sector performed well compared to Standard & Poor�s S&P 500 index over the entire period but most notably during expansion sub-periods, and that the restaurant subsector performed better than the casino or hotel sub-sectors during the crisis. They further find that capital-intensive hospitality firms responded to the liquidity crisis by increasing their financial leverage and depleting their cash holdings.