Impact of leverage on financial information quality : international evidence from the hospitality industry

Poretti, Céline (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Schatt, Alain (HEC Lausanne, Switzerland) ; Jérôme, Tiphaine (Université Grenoble Alpes)

Earnings are a key firm-performance yardstick for investors. The quality of earnings has fascinated researchers and investors alike, as it may be manipulated by a firm's management. This paper studies the relationship between earnings quality and debt levels of firms in the hospitality sector, using a sample of 642 firms from 26 countries for the 2002-2016 period. Results of this study suggests a generally positive relationship between a firm's leverage and its earnings quality in the hospitality sector, particularly for firms incorporated in countries with stronger investor protection. As such, some interesting implications of the leverage-earnings quality relationship are revealed for investors, lenders, and professionals in the hospitality industry.


Article Type:
scientifique
Faculty:
Economie et Services
School:
EHL
Institute:
Aucun institut
Subject(s):
Economie/gestion
Date:
2020-01
Pagination:
33 p.
Published in:
Journal of hospitality financial management
Numeration (vol. no.):
2020, vol. 28, no. 1
DOI:
ISSN:
1091-3211
Appears in Collection:



 Record created 2020-07-31, last modified 2020-10-27

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