Understanding the effects of economic policy uncertainty on US tourism firms’ performance

• Conrado Diego García-Gómez ^[1] ; Ender Demir ^[5] ; Ming-Hsiang Chen ^{[6] [3] [4]} ; José María Díez-Esteban ^[2]
  1. [1] Universidad de Valladolid

     Universidad de Valladolid

     Valladolid, España

     
  2. [2] Universidad de Burgos

     Universidad de Burgos

     Burgos, España

     
  3. [3] Washington State University

     Washington State University

     Estados Unidos

     
  4. [4] Guilin University of Technology

     Guilin University of Technology

     China

     
  5. [5] Istanbul Medeniyet University, Turkey
  6. [6] Nanjing Xiaozhuang University, China

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 28, Nº. Extra 5, 2022 (Ejemplar dedicado a: Panel Data Models in Tourism Research), págs. 1174-1192
• Idioma: inglés
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• Resumen

  • This study analyzes the impact of economic policy uncertainty (EPU) on the performance of US tourism firms using a sample of 296 publicly traded tourism companies from 2000 to 2018 with a sample of 3068 firm-year observations. Estimation results of panel regressio tests based on the system-generalized method of moments indicate that EPU has a negative impact on return on assets (ROA), return on equity (ROE), and Tobin’s Q. Our results are consistent for different variable specifications. We also find that firm size and leverage play a moderating role in the relationship between EPU and firm performance. Panel quantile regression results show that the impact of EPU on US tourism firm performance is asymmetric. Specifically, low-performing (25% quantile of ROA and ROE) firms are less affected by EPU, and for the case of Tobin’s Q, EPU does not affect firms with a high growth opportunity (100% quantile of Tobin’s Q).