مقاله انگلیسی مدیریت سرمایه در گردش و عملکرد شرکت در صنعت هتلداری و گردشگری
Abstract
Keywords
Introduction
Theories and literature review
Data and methodology
Empirical findings
Robustness checks
Discussion
Conclusion
Appendix.
References
ABSTRACT
The aim of this study is to provide empirical evidence concerning the effects of working capital on firm performance in the hospitality and tourism industry. We identify an inverted U-shaped relationship between working capital and firm performance. More specifically, the U-shaped relationship exists for accommodation, food and travel firms. In contrast, a positive linear relationship is valid for sport firms while changes in working capital have no effect on performance for gambling firms. To the best of our knowledge, this study is the first empirical research study to extend cross-country analysis in respect of sub-hospitality and tourism industries to a worldwide context. The findings suggest that hospitality and tourism managers should consider the diversity of relationships between working capital and firm performance in sub-hospitality and tourism industries when deciding on an appropriate strategy for working capital management.
Introduction
The hospitality and tourism industry is considered to be vulnerable to external circumstances such as unexpected economic conditions, climate change and financial crises. Seasonality poses a preeminent challenge to the hospitality and tourism industry as it may result in fluctuations to profitability. Therefore, it can be asserted that while working capital management is important for all firms, it is especially important for those in the hospitality and tourism industry. The hospitality and tourism industry has different structural characteristics to those of other industries. These characteristics can be viewed as the existence of a robust level of competition, capital intensity, high risk and high leverage (Singal, 2015). Easy entry to the sector, high price competition, a high level of fixed costs and substitutable services make the hospitality and tourism industry more competitive than other industries. Due to its extensive holdings of real estate, land, building and equipment, hospitality and tourism is a capital-intensive industry. These fixed assets can be used as collateral for borrowing and this in turn can lead to high level liabilities in the hospitality and tourism firms’ capital structure, together with a high leverage ratio. All these structural characteristics make the hospitality and tourism industry and its sub-industries different to other industries. Working capital management is an important component of a firm’s financial strategy and refers to the financing, investment and control of current assets and current liabilities within specific policy guidelines. Efficient working capital management occurs when the management team determine strategic plans and decisions with the aim of efficiently managing short-term assets and liabilities. The objective thereby is to ensure that managers can finance short-term obligations while simultaneously avoiding over investment in current assets (Mun and Jang, 2015). Further, deficiencies in working capital management may culminate in the failure of business operations (Morshed, 2020). Several researchers (Boisjoly et al., 2020; Le, 2019; Aktas et al., 2015; Kieschnick et al., 2013; Singhania and Mehta, 2017) agree that efficient working capital management is vital because it positively affects the firm’s profitability, value, competitive advantage, stock performance, market rating and shareholder’s value. In addition, efficient working capital is one of the value drivers for firms and one of the key pre-requisites to the success of firms overall (Wasiuzzaman, 2015a).