An Investigation of Long-term Debt and Firm Value in the Lodging Industry

Advances in Hospitality and Leisure

ISBN: 978-0-7623-1445-4, eISBN: 978-1-84950-506-2

ISSN: 1745-3542

Publication date: 2 May 2007


The purpose of this paper is to explore the impact of long-term debt and firm value in the lodging industry. Previous research on capital structure in the lodging industry has been conducted in an attempt to understand what motivates the use of debt. We explore this further by assessing whether or not this debt use translates into increases in firm value. The regression analysis shows that after controlling for size and risk, we find a positive relationship with long-term debt and the value of the firm. Return on assets is negatively related to firm value, but capital expenditures are not.


Dalbor, M., Lee, S. and Upneja, A. (2007), "An Investigation of Long-term Debt and Firm Value in the Lodging Industry", Chen, J. (Ed.) Advances in Hospitality and Leisure (Advances in Hospitality and Leisure, Vol. 3), Emerald Group Publishing Limited, Bingley, pp. 195-204.

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Copyright © 2007, Emerald Group Publishing Limited

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