scholarly journals Analysis of some economic-financial ratios to analyse the financial crisis in five-star hotels in Barcelona and Madrid

2019 ◽  
Vol 15 (2) ◽  
pp. 99
Author(s):  
Laia Pie ◽  
Isaac Bonillo ◽  
Judit Barcelo ◽  
Laura Fabregat-Aibar
Keyword(s):  
Financial Crisis ◽  
Balance Sheet ◽  
Financial Ratios ◽  
Construction Costs ◽  
Luxury Hotels ◽  
Analysis System ◽  
Continuous Strategies ◽  
Luxury Hotel ◽  
The Impact ◽  
Hotel Chain

Purpose: Analyse some of the financial ratios to see the impact of the economic crisis on 5-star hotels in Spain.Design/methodology/approach: The information needed to write this article was taken from the Iberian Balance Sheet Analysis System (SABI), the Hotel Occupancy Survey published periodically by the National Statistics Institute, the IDESCAT and the official websites of the hotels analysed.Findings and Originality/value: The results obtained show how the financial crisis did not have a direct impact on luxury hotels, but on the contrary, they continue to increase their success thanks to the best continuous strategies. One test is the luxury hotels that were created in Barcelona and Madrid between 2008 and 2011. The work shows that it does not take into account for a hotel chain to have more than one luxury hotel in the same city, since one both of them may end up showing financial losses. It is also found that it is important to determine the number of rooms that the hotel must have in order to avoid construction costs and to have the maximum efficiency.Research limitations/implications: The study has the problem of not updating the SABI database. In some cases, the information has not been updated since 1990.Practical implications: The result that luxury hotels can cover the fixed assets coefficient with their equity. At the same time, it supports the importance of making a better forecast of the number of rooms in order to help them have a better financing.Social implications: It supports the importance of a single luxury hotel in the same hotel chain in the same city and of making good strategic planning in order to improve the results of financial ratios.Originality/value: The article helps explain how the tourist model in Spain has changed since the beginning of the financial crisis.

To affiliate, or not to affiliate. Transaction costs and governance choices in luxury hotels in Germany

2019 ◽  
Vol 20 (3) ◽  
pp. 272-287
Author(s):  
Matteo Pedrini ◽  
Chiara De Bernardi
Keyword(s):  
Regression Analysis ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Transaction Cost Theory ◽  
Luxury Hotels ◽  
Entry Strategies ◽  
Property Owners ◽  
Luxury Hotel ◽  
Governance Choices ◽  
Hotel Chain

This paper examines the choice of affiliation or no affiliation to a large hotel chain from the viewpoint of luxury hotel property owners in Germany. Grounded in transaction cost theory, this study identifies how uncertainty and frequency influence the owners’ choice of unaffiliated operation and affiliation. The study augments the traditional governance literature in the field of the hotel by shedding light on the market/hierarchy decision of property owners rather than on the market entry strategies of international hotels firm. Through a multiple regression analysis on a sample of 122 existing five-star hotels in Germany, this study provides new empirical evidence that a frequent contract conclusion with the same hotel chain and a “hotel unrelated” background of the owner increases the likelihood of affiliation. In contrast to what transaction cost theory traditionally predicts, our results reveal that uncertainty is not influencing the owners’ market/hierarchy decision.

The impact of guaranteed bailout assistance on bank loan overstatement

2016 ◽  
Vol 12 (2) ◽  
pp. 177-210
Author(s):  
Alejandro Hazera ◽  
Carmen Quirvan ◽  
Salvador Marin-Hernandez
Keyword(s):  
Financial Crisis ◽  
Emerging Market ◽  
Balance Sheet ◽  
Bank Loan ◽  
Content Type ◽  
Put Options ◽  
Regulatory Policies ◽  
Ex Post ◽  
Ex Ante ◽  
The Impact

Purpose – The purpose of this paper is to highlight how the basic binomial option pricing model (BOPM) might be used by regulators to help formulate rules, prior to financial crisis, that help prevent loan overstatement by banks in emerging market economies undergoing financial crises. Design/methodology/approach – The paper draws on the theory of soft budget constraints (SBC) to construct a simple model in which banks overstate loans to minimize losses. The model is used to illustrate how guarantees of bailout assistance (BA) (to banks) by crisis stricken countries’ financial authorities may encourage banks to overstate loans and delay the implementation of IFRS for loan valuation. However, the model also illustrates how promises of BA may be depicted as binomial put options which provide banks with the option of either: reporting loan values on poor projects accurately and receiving the loans’ liquidation values; or, overstating loans and receiving the guaranteed BA. An illustration is also provided of how authorities may use this representation to help minimize bank loan overstatement in periods of financial crisis. In order to provide an illustration of how the option value of binomial assistance may evolve during a financial crisis, the model is generalized to the Mexican financial crisis of the late 1990s. During this period, Mexican authorities’ guarantees of BA to the nation’s largest banks encouraged those institutions to overstate loans and delay the implementation of (previously adopted) international “best practices” based loan valuation standards. Findings – Application of the model to the Mexican financial crisis provides evidence that, in spite of Mexico’s “official” 1997 adoption of international “best accounting practices” for banks, “iron clad” guarantees of BA by the country’s financial authorities to Mexico’s largest banks provided those institutions with an incentive to knowingly overstate loans in the late 1990s and early 2000s. Research limitations/implications – The model is compared against only one country in which the BA was directly infused into banks’ loan portfolios. Thus, as conceived, it is directly applicable to crisis countries in which the bailout took this form. However, the many quantitative variations of SBC models as well as recent studies which have applied the binomial model to other forms of bailout (e.g. direct purchases of bank shares by authorities) suggest that the model could be modified to accommodate different bailout scenarios. Practical implications – The model and application show that guaranteed BA can be viewed as a put option and that ex-ante regulatory policies based on the correct valuation of the BA as a binomial option might prevent banks from overstating loans. Social implications – Use of the binomial or similar approaches to valuing BA may help regulators to determine the level of BA that will not encourage banks to overstate the value of their loans. Originality/value – Recent research has used the BOPM to value, on an ex-post basis, the BA which appears on the balance sheet of institutions which have been rescued. However, little research has advocated the use of this type of model to help prevent, on an ex-ante basis, the overstatement of loans on poor projects.

scholarly journals IMPACT OF GLOBAL FINANCIAL SHOCK TO INTERNATIONAL BANK LENDING IN INDONESIA

2012 ◽  
Vol 15 (2) ◽  
pp. 75-110
Author(s):  
Tumpak Silalahi ◽  
Wahyu Ari Wibowo ◽  
Linda Nurlian
Keyword(s):  
Financial Crisis ◽  
Balance Sheet ◽  
Bank Lending ◽  
Developed Countries ◽  
Foreign Bank ◽  
International Bank ◽  
Global Banking ◽  
Foreign Affiliates ◽  
Push And Pull ◽  
The Impact

This study intends to determine whether a shock that occurred in developed countries, the source of funding, was transmitted to Indonesia through international bank lending both directly and indirectly. The methods used estimated the determinants of international bank lending. International bank lending is one form of capital flows that have the potential for rapid reversal and that can lead to a financial crisis as it has in the past. Understanding the determinants of bank lending is important as it can be used to mitigate the impact of a financial crisis in the future. The empirical results showed that international bank lending, either directly or indirectly, contributed to the Indonesian crisis. During the shock, Indonesia saw global banking contract financing. It was also found that credit activities by foreign affiliates in Indonesia saw a contraction in the country of the parent bank during the shock. However, it was found that the bank lending by foreign affiliates, as joint ventureswere more stable compared to the branch offices of a foreign bank. In aggregate, international bank lending is affected by push and pulls factors such as economic growth (in developed countries and Indonesia), risk factors, and liquidity conditions, both in Indonesia and globally. As for micro-banking models, other than the push and pull factors, the bank balance sheet and other portfolio assets also affected bank lending activities to Indonesia. Keywords: Global Financial Shocks, Foreign Affiliates, International Bank Lending, transmission path,dynamic panel.JEL Classification: C33, E51, G15

Building brand equity through communication consistency in luxury hotels: an impact-asymmetry analysis

2020 ◽  
Vol 3 (4) ◽  
pp. 451-468 ◽  
Author(s):  
Maja Šerić ◽  
Josip Mikulić
Keyword(s):  
Brand Equity ◽  
Positive Impact ◽  
Future Research ◽  
Mediterranean Country ◽  
Measurement Scales ◽  
Content Type ◽  
Asymmetry Analysis ◽  
Luxury Hotels ◽  
Luxury Hotel ◽  
The Impact

PurposeThis paper examines the development of customer-based brand equity through communication consistency in a luxury hotel segment. Communication consistency is considered as a basic principle of the integrated marketing communications (IMC) approach.Design/methodology/approachThe empirical research was conducted among 223 guests during their stay in five-star deluxe luxury hotels in a Mediterranean country. Data are analyzed through the PLS technique and impact-asymmetry analysis.FindingsCommunication consistency is found to have a strong positive impact on all brand equity dimensions, especially on brand trust, brand image and perceived quality. The impact-asymmetry analysis further revealed negatively asymmetric relationships between communication consistency and six out of seven brand equity dimensions, except for affective commitment.Research limitations/implicationsSome restrictions related to the measurement scales should be mitigated in future research.Practical implicationsCommunication consistency is confirmed as a core management practice in luxury hotel business. Marketing professionals operating in this industry are therefore confronted with increasing challenges of efficient management of IMC.Originality/valueThis work addresses several research calls from the most recent marketing and hospitality literature. The analysis of the impact of communication consistency has extended our knowledge on the potential of IMC in creation of a strong brand. Obtained insights into the shape of the relationship between communication consistency and seven different brand equity dimensions help to better understand the process of brand equity building in a luxury hotel setting.

scholarly journals The Impact of the Financial Crisis on Inter-Bank Funding: Evidence from Italian Balance Sheet Data

2011 ◽  
Author(s):  
Giuseppe Cappelletti ◽  
Antonio De Socio ◽  
Giovanni Guazzarotti ◽  
Enrico Mallucci
Keyword(s):  
Financial Crisis ◽  
Balance Sheet ◽  
Bank Funding ◽  
The Impact

Co-creation in hotel service innovation using smart phone apps: an empirical study

2017 ◽  
Vol 29 (10) ◽  
pp. 2647-2667 ◽  
Author(s):  
Bijoylaxmi Sarmah ◽  
Shampy Kamboj ◽  
Zillur Rahman
Keyword(s):  
Smart Phone ◽  
Service Innovation ◽  
Content Type ◽  
Technology Application ◽  
Luxury Hotels ◽  
Service Staff ◽  
Hotel Service ◽  
Luxury Hotel ◽  
The Impact ◽  
Adoption Intention

Purpose The purpose of this study is to extend and revise the basic technology-based service (TBS) adoption model in luxury hotels in India using smart phone apps, and to analyse the impact of the guests’ innovativeness, willingness to co-create, need for interaction and involvement on their adoption intention towards co-creatively developed new services. Design/methodology/approach Data were collected through online and field surveys from luxury hotel guests, resulting into 229 valid responses. A data analysis was done by applying the confirmatory factor analysis along with structure equation modelling. Findings The findings of this study indicate that both guests’ innovativeness and need for interaction with service staff significantly affect their involvement. A guest’s willingness to co-create acts as a partial mediator between his/her innovativeness and intention to adopt co-creatively developed new services. Research limitations/implications Use of smart phone apps by hotel guests to co-create new services and their intentions to adopt such services have been examined in the context of luxury hotels in India only and thereby limits generalization of results to other industry and country contexts. Practical implications The findings of this study would look to guide policy planners and hotel managers for implementing technology application in the co-creative hotel service innovation. Originality/value The need for interaction and customer involvement have been added as two supportive variables to the basic TBS model to analyse the adoption intention of luxury hotel guests. This is a new addition to existing literature, as majority of empirical studies in this field are from industries other than hospitality and with differing contexts.

scholarly journals The Value Relevance of Goodwill: IFRSs and Global Financial Crisis (GFC)

2018 ◽  
Vol 8 (2) ◽  
pp. 26
Author(s):  
Ng Shir Li ◽  
Dennis W Taylor
Keyword(s):  
Financial Crisis ◽  
Financial Reporting ◽  
Global Financial Crisis ◽  
Value Relevance ◽  
Explanatory Power ◽  
Balance Sheet ◽  
Share Price ◽  
Book Value ◽  
Income Statement ◽  
The Impact

This study contributes to the issue of accounting for goodwill by examining the impact of changing from the Australian Generally Accepted Accounting Principles (AGAAP) to Australian International Financial Reporting Standards (AIFRS) on goodwill, 3 years (2002 to 2004) before and 3 years (2006 to 2008) after AIFRS adoption. The sample is drawn from top 200 companies listed on the Australian Stock Exchange (ASX). This study applies multiple regressions. The dependent variable is the closing share price 3 months after the balance sheet date. The independent variables consist of earnings per share, book value per share, goodwill in the balance sheet, goodwill in the income statement (goodwill amortisation and goodwill impairment) and goodwill acquisition. The findings indicate that goodwill accounted for in the income statement and balance sheet do not provide increased explanatory power of market value under AIFRS compared to AGAAP. Moreover, the goodwill in the income statement does not show value relevance in year 2007, but became significant in year 2008 during the global financial crisis (GFC). Also, the age of goodwill recorded in the balance sheet does not affect the value relevance of earnings and book value in the post-adoption period. This study contributes new evidence on accounting for goodwill under pre and post-IFRS accounting regimes in Australia. This is also the first study to examine the separate effects of goodwill accounting on earnings and net assets, with special attention given to the period before and during the GFC in capital markets.

The Impact of Materiality Decisions on Financial Ratios: A Computer Simulation

1997 ◽  
Vol 12 (2) ◽  
pp. 125-147 ◽  
Author(s):  
Jerry L. Turner
Keyword(s):  
Balance Sheet ◽  
Distribution Patterns ◽  
Error Distribution ◽  
Financial Statement ◽  
Financial Ratios ◽  
Standard Normal Distribution ◽  
Income Statement ◽  
Standard Normal ◽  
The Impact ◽  
Profitability Ratios

This study examines the extent to which immaterial uncorrected errors may combine to affect specific financial ratios. A simulation is performed in which three balance sheet accounts and three related income statement accounts are seeded with immaterial errors. The magnitudes of the errors are controlled so the financial statement account balances are materially correct both individually and in the aggregate. The study examines six materiality heuristics for each of three industry classifications and three different error distribution patterns. For each heuristic/industry combination and error distribution pattern, a 95 percent confidence interval is generated for nine financial ratios. Results indicate that immaterial errors may combine to create substantial variances in some ratios. Profitability ratios based on income statement accounts display wide confidence intervals, while solvency ratios based on balance sheet accounts display relatively narrow intervals. Comparison between a standard normal distribution and a nonsymmetrical error distribution indicates that ratio variances are substantial and sensitive to error patterns even when errors are immaterial. Tests for equality of variances identify significant differences between heuristic methods and between industries. When making the decision regarding requiring entry or waiving discovered errors, the auditor should consider the impact of such errors not only on financial statement balances, but on the ways users may combine those balances.

scholarly journals IMPACT OF GLOBAL FINANCIAL SHOCK TO INTERNATIONAL BANK LENDING IN INDONESIA

2012 ◽  
Vol 15 (2) ◽  
pp. 77-114 ◽  
Author(s):  
Tumpak Silalahi ◽  
Wahyu Ari Wibowo ◽  
Linda Nurliana
Keyword(s):  
Financial Crisis ◽  
Balance Sheet ◽  
Bank Lending ◽  
Developed Countries ◽  
Foreign Bank ◽  
International Bank ◽  
Global Banking ◽  
Foreign Affiliates ◽  
Push And Pull ◽  
The Impact

This study intends to determine whether a shock that occurred in developed countries, the source of funding, was transmitted to Indonesia through international bank lending both directly and indirectly. The methods used estimated the determinants of international bank lending. International bank lending is one form of capital flows that have the potential for rapid reversal and that can lead to a financial crisis as it has in the past. Understanding the determinants of bank lending is important as it can be used to mitigate the impact of a financial crisis in the future. The empirical results showed that international bank lending, either directly or indirectly, contributed to the Indonesian crisis. During the shock, Indonesia saw global banking contract financing. It was also found that credit activities by foreign affiliates in Indonesia saw a contraction in the country of the parent bank during the shock. However, it was found that the bank lending by foreign affiliates, as joint ventureswere more stable compared to the branch offices of a foreign bank. In aggregate, international bank lending is affected by push and pulls factors such as economic growth (in developed countries and Indonesia), risk factors, and liquidity conditions, both in Indonesia and globally. As for micro-banking models, other than the push and pull factors, the bank balance sheet and other portfolio assets also affected bank lending activities to Indonesia.Keywords: Global Financial Shocks, Foreign Affiliates, International Bank Lending, transmission path,dynamic panel.JEL Classification: C33, E51, G15

Impact of oil and gas prices shocks on banks’ deposits in an oil and gas-rich economy

2018 ◽  
Vol 13 (5) ◽  
pp. 875-901 ◽  
Author(s):  
Abdulazeez Y.H. Saif-Alyousfi ◽  
Asish Saha ◽  
Rohani Md-Rus
Keyword(s):  
Financial Crisis ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Islamic Banks ◽  
Aggregate Level ◽  
Price Changes ◽  
Content Type ◽  
Bank Deposits ◽  
The Impact

Purpose The purpose of this paper is to investigate and compare the impact of oil and gas prices changes on bank deposits at the aggregate as well as at the level of commercial and Islamic banks in Qatar over the period 2000–2016. Design/methodology/approach Using the BankScope Database as well as bank-level balance sheet and financial statements data, the authors use one-step system GMM dynamic model to examine and compare the association between oil and gas prices changes with bank deposits in Qatar. The authors also test hypotheses of direct and indirect impacts of oil and gas prices changes on bank deposits. Findings The results indicate that oil and gas prices changes have a direct impact on deposits of banks at the aggregate level in Qatar. However, the authors find that oil and gas price changes significantly affect deposits of Qatari commercial banks directly prompting enhanced lending by banks and the consequent business activities in the economy, while their impact on the deposits of Qatari Islamic banks is indirect, i.e. the impact is permeated through the macroeconomic and institutional characteristics of the country that are reinforced by the growing expectations and commercial sentiment of the country. The authors find that significant association between oil price changes and deposit growth during the global financial crisis 2008 has been distorted. However, the authors find that there was a sharp rise in the deposits of Islamic banks during the period of global financial crisis. Practical implications The results of this study necessitate policy measures that can counter the effects of changes in oil and gas prices on the effectiveness of bank deposits. Originality/value It is widely recognized that oil and gas prices and the level of production are of great importance to the economic development of oil and gas exporting countries. So far, however, no econometric study has been reported in the literature which analyses and compares the impact of oil and gas prices changes on bank deposits of commercial and Islamic banks and also at the aggregate level in any of the oil-exporting economies. Thus, this study provides the first empirical evidence on distinct direct and indirect channels through which oil and gas prices changes may affect bank deposits.

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