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Article
Publication date: 8 May 2017

Kwanglim Seo, Ellen Eun Kyoo Kim and Amit Sharma

This paper aims to find alternative explanations for the use of long-term debt in the US restaurant industry from a behavioral perspective. The three-fold purpose of the…

Abstract

Purpose

This paper aims to find alternative explanations for the use of long-term debt in the US restaurant industry from a behavioral perspective. The three-fold purpose of the present study is to examine the impact of CEO overconfidence on the use of long-term debt; explore how CEO overconfidence moderates the relationship between growth opportunities and long-term debt; and analyze the moderating role of CEO overconfidence based on cash flow levels in the context of the restaurant industry.

Design/methodology/approach

Using a sample of publicly traded US restaurant firms between 1992 and 2015, this study used generalized methods of moments with instrumental variable technique to analyze the panel data.

Findings

The findings of this study highlight the importance of considering behavioral traits of CEOs, such as overconfidence to better understand the US restaurant firms’ financing behaviors. This study found that overconfident CEOs tend to use more long-term debt when firms have greater growth opportunities and low cash flow.

Practical implications

Given that psychological and behavioral features of CEOs are critical in understanding the variations in corporate financing decisions and capital structure, shareholders and boards of directors of growth-seeking restaurant firms should incorporate the behavioral aspects of overconfident CEOs in the design of long-term debt contracts to mitigate liquidation risk while developing compensation practices that encourage overconfident CEOs to finance growth.

Originality/value

Despite its heavy reliance on long-term debt in the US hospitality industry, prior studies provided mixed findings for the determinants of long-term debt. This study makes a contribution to the literature by offering alternative approaches to examining long-term debt decisions among US restaurant firms.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 27 November 2020

Sung Gyun Mun, Linda Woo and Kwanglim Seo

This paper aims to understand the effect of food and beverage (F&B) services on the operating performance of luxury hotels and to identify the heterogeneous effects of the…

Abstract

Purpose

This paper aims to understand the effect of food and beverage (F&B) services on the operating performance of luxury hotels and to identify the heterogeneous effects of the luxury hotels’ F&B operation on the business performance between Asia and the USA.

Design/methodology/approach

Operating performance of luxury hotels in Asia (37 hotels), including Japan, Singapore, South Korea and Hong Kong and in the USA (72 hotels), including New York, California, Florida, Illinois and Texas was collected from STR reports. This study applied generalized estimating equations models to reach the conclusions.

Findings

The emphasis on F&B services exhibits a significant positive effect on the operating performance of luxury hotels in Asia. The occupancy rate and gross operating profit per available room of luxury hotels in Asia have improved with the investment in F&B offerings. Therefore, a distinctive F&B offering should be considered as one of the main products and services rather than a supplementary service in Asia. While devotion to F&B services lacks a significant positive effect on luxury hotels in the USA.

Originality/value

This study is the first effort to identify the importance of luxury hotels’ F&B operation for the overall hotel performance in Asia and the USA by focusing on the entire industry’s operating information.

Details

International Journal of Contemporary Hospitality Management, vol. 33 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 11 April 2019

Mehmet Ali Koseoglu

This study aims to address how the social structure of the hospitality management field has evolved from 1960 to 2016.

Abstract

Purpose

This study aims to address how the social structure of the hospitality management field has evolved from 1960 to 2016.

Design/methodology/approach

The informal social structure of the hospitality management literature was analyzed by collecting authorship data from seven hospitality management journals. Co-authorship analyses via network analysis were conducted.

Findings

According to the findings, throughout the history of hospitality management, international collaboration levels are relatively low. Based on social network analysis, the research community is only loosely connected, and the network of the community does not fit with the small-world network theory. Additional findings indicate that researchers in the hospitality management literature are ranked via degree centrality, closeness centrality and betweenness centrality. Cliques, which contain at least five researchers, and core researchers are identified.

Practical implications

This study helps both scholars and practitioners improve the informal structure of the field. Scholars must generate strong ties to strengthen cross-fertilization in the field; hence, they collaborate with authors who have strong positions in the field. Specifically, this provides a useful performance analysis. To the extent that institutions and individuals are rewarded for publications, this study demonstrates the performance and connectivity of several key researchers in the field. This finding could be interesting to (post)graduate students. Hospitality managers looking for advisors and consultants could benefit from the findings. Additionally, these are beneficial for journal editors, junior researchers and agencies/institutions.

Originality/value

As one of the first study in the field, this research examines the informal social structure of hospitality management literature in seven journals.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 2
Type: Research Article
ISSN: 0959-6119

Keywords

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