Simplifying the complex: 10-K readability and asset structure (download)
International Journal of Hospitality Management, 2024, 119: 103705.
This study explores the relationship between corporate asset intensity and the readability of 10-K forms within the U.S. lodging industry over the period 1994–2020. Using OLS regressions, the study reveals that as a company's asset intensity decreases, so does the readability of its 10-K form. Additionally, we show that this relationship has become more pronounced since 1998 and is stronger for larger companies or those in the hotel industry. These results suggest that, in light of ongoing discussions and policies surrounding the readability of financial statements, companies produce more comprehensible documentation when their business operations are less specialized. This finding indicates that companies that need to address a more diverse investor base try to be as understandable as possible. This should also lead to social implications in terms of enhanced transparency, improved financial literacy, investor confidence, and a positive impact on corporate responsibility for stakeholders.
Innovative business strategies, corporate performance, and firm value in the travel and leisure industry (download)
with Cédric Poretti and Pierre de Vivie de Régie, International Journal of Hospitality Management, 2024, 118: 103683.
This study examines the influence of innovative business strategies on corporate profitability and valuation in the travel and leisure industry. Following the theoretical framework developed by Miles and Snow (1978) to measure business strategy and using a sample of 791 firm-year observations for 138 publicly listed international companies from 2014 to 2021, we find that more innovative business strategies are associated with lower profitability but higher market valuations. Moreover, the negative association of innovation with profitability reversed during COVID-19. Our paper provides insights into the short-term consequences of innovation and how investors perceive innovative companies. Managers and investors may use our results to better understand the key factors affecting corporate performance and value in the travel and leisure industry.
Cross-dimensional measures of asset lightness and fee orientation in lodging groups (download)
with Sonja Lussi, Philippe Masset and Inès Blal, International Journal of Hospitality Management, 2023, 109: 103391.
This study proposes cross-dimensional measures of the degree of implementation of the lodging industry's asset-light & fee-oriented (ALFO) strategy. We apply a common factor analysis to measure the degree of implemented ALFO strategy on a sample of 14 lodging companies over the period 2001-2021. The analysis confirms that there is no one-size-fits-all approach and that companies position themselves distinctively on the two dimensions. FO has strengthened continuously since 2005, while the degree of AL increased rapidly between 2001 and 2005, but its evolution has been more erratic since then. The evidence further suggests that intangibles have gained in importance over recent years, explaining the deceleration in asset reduction in the balance sheet of some companies. This study also contributes to the debate on the financial impact of the asset-light strategy. We show that AL and FO positively affect performance and value and that by combining them, the effect doubles.
Family Ownership, Asset Levels and Firm Performance in Western European Hospitality Companies (download)
with Philippe Masset and Irena Uzelac, Journal of Hospitality & Tourism Research, 2019, 43(6): 867-889.
This article uses a comprehensive sample of companies from 16 Western European countries over the period 2004 and 2016 to examine the relationship between blockholder ownership, asset levels, and corporate performance in the hospitality industry. We find evidence that both family and nonfamily blockholders display a higher use of assets in the lodging industry, but only nonfamily blockholders do so in the food and beverage industry. At the same time, nonfamily blockholders tend to display a poor performance in both industries, while this is only true for the lodging industry in the case of family-owned businesses. Finally, we show that asset levels moderate the observed ownership–performance relationship. Our results hold both for static and dynamic asset measures and taking the global financial crisis into account.
International Journal of Hospitality Management, 2024, 119: 103705.
This study explores the relationship between corporate asset intensity and the readability of 10-K forms within the U.S. lodging industry over the period 1994–2020. Using OLS regressions, the study reveals that as a company's asset intensity decreases, so does the readability of its 10-K form. Additionally, we show that this relationship has become more pronounced since 1998 and is stronger for larger companies or those in the hotel industry. These results suggest that, in light of ongoing discussions and policies surrounding the readability of financial statements, companies produce more comprehensible documentation when their business operations are less specialized. This finding indicates that companies that need to address a more diverse investor base try to be as understandable as possible. This should also lead to social implications in terms of enhanced transparency, improved financial literacy, investor confidence, and a positive impact on corporate responsibility for stakeholders.
Innovative business strategies, corporate performance, and firm value in the travel and leisure industry (download)
with Cédric Poretti and Pierre de Vivie de Régie, International Journal of Hospitality Management, 2024, 118: 103683.
This study examines the influence of innovative business strategies on corporate profitability and valuation in the travel and leisure industry. Following the theoretical framework developed by Miles and Snow (1978) to measure business strategy and using a sample of 791 firm-year observations for 138 publicly listed international companies from 2014 to 2021, we find that more innovative business strategies are associated with lower profitability but higher market valuations. Moreover, the negative association of innovation with profitability reversed during COVID-19. Our paper provides insights into the short-term consequences of innovation and how investors perceive innovative companies. Managers and investors may use our results to better understand the key factors affecting corporate performance and value in the travel and leisure industry.
Cross-dimensional measures of asset lightness and fee orientation in lodging groups (download)
with Sonja Lussi, Philippe Masset and Inès Blal, International Journal of Hospitality Management, 2023, 109: 103391.
This study proposes cross-dimensional measures of the degree of implementation of the lodging industry's asset-light & fee-oriented (ALFO) strategy. We apply a common factor analysis to measure the degree of implemented ALFO strategy on a sample of 14 lodging companies over the period 2001-2021. The analysis confirms that there is no one-size-fits-all approach and that companies position themselves distinctively on the two dimensions. FO has strengthened continuously since 2005, while the degree of AL increased rapidly between 2001 and 2005, but its evolution has been more erratic since then. The evidence further suggests that intangibles have gained in importance over recent years, explaining the deceleration in asset reduction in the balance sheet of some companies. This study also contributes to the debate on the financial impact of the asset-light strategy. We show that AL and FO positively affect performance and value and that by combining them, the effect doubles.
Family Ownership, Asset Levels and Firm Performance in Western European Hospitality Companies (download)
with Philippe Masset and Irena Uzelac, Journal of Hospitality & Tourism Research, 2019, 43(6): 867-889.
This article uses a comprehensive sample of companies from 16 Western European countries over the period 2004 and 2016 to examine the relationship between blockholder ownership, asset levels, and corporate performance in the hospitality industry. We find evidence that both family and nonfamily blockholders display a higher use of assets in the lodging industry, but only nonfamily blockholders do so in the food and beverage industry. At the same time, nonfamily blockholders tend to display a poor performance in both industries, while this is only true for the lodging industry in the case of family-owned businesses. Finally, we show that asset levels moderate the observed ownership–performance relationship. Our results hold both for static and dynamic asset measures and taking the global financial crisis into account.
