Ma ias, Fe nanda; Rebelo, Sand a; And az, Geo ge e; Gue ei o, José
A icle
The in luence o i m cha ac e is ics and mac oeconomic
ac o s on inancial pe o mance: E idence om he
Po uguese ho el indus y
Economies
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Sugges ed Ci a ion: Ma ias, Fe nanda; Rebelo, Sand a; And az, Geo ge e; Gue ei o, José (2024) :
The in luence o i m cha ac e is ics and mac oeconomic ac o s on inancial pe o mance: E idence
om he Po uguese ho el indus y, Economies, ISSN 2227-7099, MDPI, Basel, Vol. 12, Iss. 11, pp.
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Ci a ion: Ma ias, Fe nanda, Sand a
Rebelo, Geo ge e And az, and José
Gue ei o. 2024. The In luence o Fi m
Cha ac e is ics and Mac oeconomic
Fac o s on Financial Pe o mance:
E idence om he Po uguese Ho el
Indus y. Economies 12: 306. h ps://
doi.o g/10.3390/economies12110306
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A icle
The In luence o Fi m Cha ac e is ics and Mac oeconomic Fac o s
on Financial Pe o mance: E idence om he Po uguese
Ho el Indus y
Fe nanda Ma ias 1,2,* , Sand a Rebelo 1,3 , Geo ge e And az 1,2,* and JoséGue ei o 1
1Escola Supe io de Ges ão, Ho ela ia e Tu ismo (ESGHT), Uni e si y o Alga e, Campus da Penha,
8005-139 Fa o, Po ugal; s [email p o ec ed] (S.R.); j [email p o ec ed] (J.G.)
2
Cen e o S udies and Ad anced T aining in Managemen and Economics (CEFAGE), Uni e si y o Alga e,
Campus de Gambelas, 8005-139 Fa o, Po ugal
3Cen e o Tou ism Resea ch De elopmen and Inno a ion (CITUR), Escola Supe io de Ges ão, Ho ela ia e
Tu ismo (ESGHT), Uni e si y o Alga e, Campus da Penha, 8005-139 Fa o, Po ugal
*Co espondence: [email p o ec ed] (F.M.); [email p o ec ed] (G.A.)
Abs ac : This s udy examines he de e minan s o he inancial pe o mance o he Po uguese
ho el indus y. Despi e he economic ele ance o he ho el indus y and inancial pe o mance as
an indica o o business su i al, academic esea ch on he ac o s ha in luence i in he con ex
o his indus y, pa icula ly in Po ugal, is no ex ensi e. This s udy encompassed a sample o
738 ho el companies om 2016 o 2021, using da a om he O bis da abase. This esea ch was
based on he assump ion ha a company’s size, liquidi y, he angibili y o i s asse s, and deb le el
in luence inancial pe o mance in he ho el indus y, as well as he assump ion ha g oss domes ic
p oduc and consume sen imen also a ec he business success o ho el companies. By applying
a panel da a me hodology, he indings indica e ha all a iables showed signi ican in luence on
inancial pe o mance, excep liquidi y. The analysis also e eals ha smalle companies we e mo e
nega i ely a ec ed by he demand decline induced by he COVID-19 pandemic. To imp o e he
inancial pe o mance o he Po uguese ho el indus y, he indings sugges ha policymake s mus
wo k owa ds ensu ing di e si ied sou ces o inancing o he ho el business, such as in es men
subsidies, so ha companies can minimize deb , especially du ing pe iods o slow economic g ow h.
Addi ionally, companies mus p omo e managemen s a egies ha enhance sel - inancing. Bo h
measu es could help companies inc ease hei size, aking ad an age o good business oppo uni ies
o explo e economies o scale.
Keywo ds: inancial pe o mance; pe o mance de e minan s; ho el indus y; panel eg ession; Po ugal
1. In oduc ion
Fi m pe o mance is a c ucial ac o in de e mining sus ainable g ow h and he o e all
heal h o any economy, making i a popula esea ch subjec (Tsai e al. 2011). Financial
pe o mance is a undamen al indica o o a business’s su i al and is essen ial o assessing
i m pe o mance.
This s udy a ea is impo an o a ious s akeholde s, including owne s, manage s,
c edi o s, employees, he local communi y, and he s a e. Al hough esea ch has been
conduc ed on his opic, signi ican gaps emain, highligh ing he need o u he s ud-
ies o p o ide o ganiza ions wi h mo e e ec i e s a egies o managing hei pe o -
mance
(Sainaghi e al. 2013)
. On he o he hand, measu ing pe o mance is challeng-
ing. Fo ins ance, a me a-analysis o ou ism pe o mance measu emen conduc ed by
Sainaghi e al. (2017)
highligh s he complexi y, mul ile el na u e, and in e disciplina y as-
pec s o pe o mance measu emen . Thei indings e eal ha al hough ho el pe o mance
is a well- esea ched a ea among hospi ali y schola s, signi ican gaps s ill exis . The e o e,
Economies 2024,12, 306. h ps://doi.o g/10.3390/economies12110306 h ps://www.mdpi.com/jou nal/economies
Economies 2024,12, 306 2 o 13
unde s anding he ac o s ha in luence inancial pe o mance is essen ial o imp o ing
decision-making by manage s and policymake s.
This s udy is pa icula ly ele an as i analyses a c ucial componen o he ou ism in-
dus y: ho els. Ho els play an impo an ole in ou ism by d i ing he sec o ’s in es men ,
employmen , and inno a ion (Dimi i´c e al. 2019). Mo eo e , Singal (2015) highligh s ha
he hospi ali y indus y (including lodging and es au an s, as de ined by Pizam 2009) and
he ou ism indus y (e.g., a el ade and a ac ions, acco ding o Pizam 2009) exhibi
highe le e age, inc eased isk, g ea e capi al in ensi y, and a mo e in ense compe i i e
i al y compa ed o o he indus ies. The e o e, using his indus y as a con ex o es ing
business heo ies is well jus i ied, as i can highligh subs an ial di e ences in decision-
making and i m ou comes, such as inancial and social pe o mance. Acco ding o he
Wo ld T a el & Tou ism Council (WTTC 2023b), in 2022, he ou ism sec o ep esen ed
app oxima ely 7.6% o global GDP, amoun ing o o e USD 7.7 illion, and accoun ed
o 9% o o al global employmen , wi h a con ibu ion o 295 million jobs. In Po ugal,
he signi icance o his sec o is e en g ea e , con ibu ing 15.8% o GDP (INE 2023) and
p o iding 921,000 jobs, which is 18.9% o na ional employmen (WTTC 2023a) in 2022.
The li e a u e iden i ies a ange o ac o s ha in luence ho el pe o mance, including
in e nal ac o s ela ed o ho el cha ac e is ics and ex e nal ac o s such as economic condi-
ions, loca ion, and he compe i i e en i onmen (e.g., Chen 2010;Sainaghi 2010;Issah and
An wi 2017;Lado-Ses ayo e al. 2017;Ka ano ic 2023;Pimi´c e al. 2024). This pape aims o
analyze he de e minan s o inancial pe o mance in he ho el indus y, ocusing on he
Po uguese con ex . The de e minan s encompass a iables ela ed o ho el cha ac e is ics
and ex e nal ac o s, pa icula ly economic condi ions, gi en ha he ho el indus y is
highly sensi i e o economic luc ua ions (Chen 2010,2015).
This s udy examined ho el da a collec ed om he ORBIS da abase, spanning 2016 o
2021. This six-yea pe iod is pa icula ly signi ican as i cap u es wo dis inc economic
scena ios ha a ec ed he ho el indus y, illus a ing i s sensi i i y o economic cycles
(Chen 2010,2015;Sainaghi e al. 2013). The indings e eal a posi i e ela ionship be ween
ho el size and pe o mance, wi h smalle companies expe iencing a mo e p onounced
nega i e impac du ing pe iods o signi ican demand decline, such as he global economic
down u n igge ed by he COVID-19 pandemic. The analysis also e eals ha deb
and angible asse s nega i ely a ec pe o mance, while g oss domes ic p oduc (GDP)
and he consume con idence index ha e a posi i e in luence. In e es ingly, liquidi y
does no appea o be a signi ican ac o in explaining he pe o mance o Po uguese
ho el companies.
Due o he lack o li e a u e on Po uguese ho el pe o mance de e minan s, his e-
sea ch o e s se e al con ibu ions o he exis ing li e a u e. Fi s , i demons a es ha
in insic managemen ac o s and mac oeconomic condi ions can signi ican ly impac ho el
company pe o mance, p o iding aluable insigh s o manage s and policymake s. Speci -
ically, o imp o e he inancial pe o mance o he Po uguese ho el indus y, he indings
sugges ha policymake s mus wo k owa ds ensu ing di e si ied sou ces o inancing
o he ho el business, such as in es men subsidies, so ha companies can minimize deb ,
especially du ing pe iods o slow economic g ow h. Addi ionally, companies mus p omo e
managemen s a egies ha enhance sel - inancing. Bo h measu es could help companies
inc ease hei size, aking ad an age o good business oppo uni ies o explo e economies o
scale. Second, by conside ing he analysis pe iod om 2016 o 2021, i conside s wo dis inc
scena ios: he p e-pandemic pe iod and he pandemic pe iod, whose analysis con ibu es
o en iching he li e a u e on he impac o he COVID c isis on he pe o mance o he
hospi ali y sec o . To he bes o he au ho s’ knowledge, his is he i s s udy conduc ed on
Po ugal’s ho el indus y ha examines he impac o consume sen imen on companies’
inancial pe o mance. P e ious s udies ocused on lis ed companies. This s udy also
di e s om p e ious s udies as i in es iga es he e ec s o he COVID-19 pandemic on
Po uguese ho el businesses, a ac o ha has no been explo ed in ea lie s udies.
Economies 2024,12, 306 3 o 13
This s udy is o ganized as ollows. A e his in oduc ion, he second sec ion e iews
he exis ing li e a u e on inancial pe o mance in he ho el indus y and o mula es he
esea ch hypo heses. The hi d sec ion de ails he da a, a iables, and es ima ion me hods
used in he s udy. The ou h sec ion p esen s he esul s and hei discussion, and inally,
he i h sec ion p esen s he conclusions.
2. Li e a u e Re iew and Hypo heses
In ecen decades, he concep o social esponsibili y, which iews a company as a
social o ganiza ion ha should bene i all s akeholde s, has gained signi icance. Howe e ,
maximizing owne s’ weal h and c ea ing alue o he company emain cen al mo i a-
ions o i s leade s. While companies may pu sue a ious goals, p o i is undoub edly
a undamen al objec i e o ensu ing su i al. The e o e, i is c ucial o unde s and he
cha ac e is ics ha can enhance i m pe o mance o all s akeholde s.
Fi m pe o mance can be assessed h ough a ious a iables. Siddiqui (2015), in
his me a-analysis, iden i ies wo p ima y s eams o pe o mance me ics: one based on
accoun ing measu es, such as e u n on asse s (ROA), e u n on equi y (ROE), and e u n
on sales (ROS), which ocus on p o i abili y, and he o he based on ma ke measu es,
such as Tobin’s Q and ma ke - o-book alue (MBV). Ou s udy ocuses on non-lis ed i ms
o which ma ke p ice da a a e una ailable. The e o e, we op ed o use an accoun ing
measu e. Some s udies sugges ha accoun ing measu es can be easily manipula ed a a
managemen ’s disc e ion (Rhoades e al. 2002). Despi e he lack o consensus on he alue
o a ious measu es, e u n on asse s (ROA) emains he mos eliable ool o assessing
inancial pe o mance in unlis ed companies (Madan 2007), and ROA se es as a mo e
e ec i e p oxy o he pe o mance o lodging i ms han ROE due o i s s onge co ela ion
wi h isk measu es (Lee 2008).
Nex , we p esen a li e a u e e iew on he ela ionship be ween inancial pe o mance
and i s po en ial explana o y a iables. Conside ing ha he heo e ical and/o empi ical
esea ch on he e ec o he dependen a iables on inancial pe o mance emains incon-
clusi e, he co esponding hypo hesis will be o mula ed wi hou speci ying he expec ed
di ec ion o hei ela ionship (posi i e o nega i e).
2.1. Fi m’s Speci ic Cha ac e is ics
2.1.1. Fi m Size
Sainaghi (2010), in his s udy on he s a e o he a o ho el pe o mance, a gues ha size
is a ai ha appea s o ha e an impo an link wi h pe o mance. Some au ho s a gue ha
i m size nega i ely a ec s inancial pe o mance, sugges ing ha inc eased size can exace -
ba e co po a e ed ape and lead o esou ce managemen dys unc ion
(Mao and Gu 2008)
.
Con e sely, o he s belie e ha la ge i ms bene i om posi i e pe o mance ou comes
due o a ious ac o s, namely, economies o scale, mo e p omo ional oppo uni ies, and
imp o emen s in asse e iciency and company managemen
(Mao and Gu 2008)
. Addi ion-
ally, la ge companies a e o en hough o possess g ea e ma ke powe , enabling hem
o pe o m be e in compe i i e en i onmen s and adap mo e e ec i ely o economic
and social changes (Chen 2010). Using a sample o Belgian i ms om a ious sec o s,
Deloo (2003) inds ha size posi i ely impac s p o i abili y, as measu ed by ROA. Simila ly,
Se asquei o and Nunes (2008) demons a e a posi i e ela ionship be ween ROA and i m
size in a sample o small and medium-sized Po uguese companies, including ho els and
es au an s, wi h size measu ed by o al asse s, sales, and he numbe o employees. Also,
Pimi´c e al. (2024) ound ha size posi i ely in luenced business success in a sample o
115 small, amily-ope a ed ho els.
In hei s udy o manu ac u ing and se ice sec o i ms om Eu opean Union (EU)
membe coun ies—Belgium, F ance, I aly, Spain, and he UK—Godda d e al. (2005) ound
ha all he es ima ed coe icien s showed a nega i e and s a is ically signi ican ela ionship
be ween i m size and p o i abili y. Using inancial da a om ho el companies in Tunisia,
Ben Aissa and Goaied (2016) also ind ha ho el size nega i ely impac s p o i abili y.
Economies 2024,12, 306 4 o 13
Simila ly, in he mac oeconomic con ex o he Ibe ian Peninsula, Ne es e al. (2022) show
ha i m size nega i ely in luences inancial pe o mance, as measu ed by ROA.
The e iewed li e a u e leads o he o mula ion o he i s hypo hesis:
Hypo hesis 1. Fi m size has a signi ican impac on inancial pe o mance in he ho el indus y.
2.1.2. Liquidi y
Liquidi y managemen is essen ial o all companies, ega dless o hei size o ype o
business, as i in luences hei pe o mance and should be a key componen o inancial
planning (Enq is e al. 2014). High liquidi y educes a i m’s exposu e o he isk o being
unable o mee sho - e m inancial commi men s. While mos empi ical s udies on wo king
capi al managemen and p o i abili y suppo he idea ha agg essi e wo king capi al
policies enhance p o i abili y (Ga cia-Te uel and Ma inez-Solano 2007), he obse ed
ela ionship be ween his a iable and inancial pe o mance emains inconclusi e.
Some empi ical s udies conclude a posi i e ela ionship be ween liquidi y and p o -
i abili y. Fo example, Deloo (2003) sugges s ha manage s can enhance i m p o i abili y
by educing he numbe o days ha accoun s ecei able and in en o ies a e ou s anding.
Simila ly, Godda d e al. (2005) ound ha i ms wi h highe liquidi y end o be mo e
p o i able in a sample o manu ac u ing and se ice sec o i ms om Eu opean Union
(EU) membe coun ies. They a gue ha companies wi h g ea e liquidi y ha e he lex-
ibili y o adap o changes in a ola ile compe i i e en i onmen , which likely bene i s
p o i abili y. Ga cia-Te uel and Ma inez-Solano (2007) also con i m he signi ican ole o
wo king capi al managemen in gene a ing alue o small and medium-sized i ms. Also,
Pimi´c e al. (2024)
ound ha liquidi y posi i ely in luences he ho el’s business success.
Howe e , o he s udies sugges ha liquidi y can nega i ely impac i m pe o mance.
Acco ding o agency heo y, Jensen (1986) a gues ha high liquidi y may inc ease agency
cos s o owne s by incen i ising manage s o misuse excess cash. Addi ionally, some
esea che s conclude ha liquidi y is no a signi ican ac o in inancial pe o mance (e.g.,
Mao and Gu 2008;Se asquei o and Nunes 2008;Ne es e al. 2022).
Based on he p e ious indings, we o mula e he second hypo hesis:
Hypo hesis 2. The i m’s liquidi y has a signi ican impac on inancial pe o mance in he
ho el indus y.
2.1.3. Tangible Asse s
Tangible asse s a e a colla e al sou ce ha acili a es access o c edi and helps mi i-
ga e agency con lic s be ween manage s and c edi o s, he eby educing agency cos s o
deb (Jensen and Meckling 1976). The e o e, angible asse s acili a e bo owing, which
equi es he assump ion o obliga ions such as p incipal epaymen and in e es paymen s.
This compels manage s o adop a managemen app oach mo e aligned wi h he owne s’
objec i es, p omo ing g ea e e iciency and alue c ea ion. Consequen ly, agency heo y
indi ec ly p edic s a posi i e associa ion be ween pe o mance and asse angibili y. How-
e e , o Belgian i ms, Deloo (2003) con i med a nega i e ela ionship be ween he le el o
angible asse s and pe o mance. On he o he hand, some au ho s a gue ha a company
wi h a highe le el o in angible asse s has g ea e managemen lexibili y, which is c ucial
o c ea ing alue (e.g., Andono a and Ruíz-Pa a 2016). Thus, i can be indi ec ly in e ed
ha a nega i e associa ion exis s be ween pe o mance and asse angibili y. Empi ical
s udies demons a e a posi i e impac o in angible asse s on o ganiza ional pe o mance
(e.g., Chun and Nadi i 2016). Se asquei o and Nunes (2008) iden i y a nega i e and s a-
is ically signi ican ela ionship be ween he le el o angible asse s and pe o mance, as
measu ed by ROA, in small and medium-sized Po uguese companies. They p opose ha
a lowe le el o angible asse s, combined wi h a s onge endency owa d inno a ion,
enhances pe o mance. Howe e , o he s udies conclude ha angible asse s a e i ele an
o explaining ROI (e.g., Bo a 2019).
Economies 2024,12, 306 5 o 13
Based on he li e a u e, he ollowing hypo hesis is p oposed:
Hypo hesis 3. Tangible asse s ha e a signi ican impac on inancial pe o mance wi hin he
ho el indus y.
2.1.4. Le e age
The li e a u e examining he impac o indeb edness on i m pe o mance can be
summa ized in o wo main heo ies: he ade-o heo y and he pecking o de heo y. The
ade-o heo y, which de eloped om Modigliani and Mille ’s (1958) ini ial p oposi ion
ega ding he i ele ance o capi al s uc u e, posi s ha a i m’s op imal deb le el balances
he associa ed bene i s and cos s.
The gains om using deb lie in he ax deduc ibili y o in e es , and he educ ion in
equi y agency cos s, as deb plays a disciplining ole in he ela ionship be ween manage s
and owne s (Jensen 1986). The cos s o deb a e associa ed wi h se e al ac o s ha may
lead companies o adop mo e mode a e deb le els. These ac o s include expec ed
bank up cy cos s, educed inancial lexibili y o espond o s a egic con ingencies (e.g.,
g ow h oppo uni ies) o ope a ional con ingencies (e.g., inc eased wo king capi al needs),
agency cos s a ising om con lic s o in e es be ween owne s and c edi o s (Jensen and
Meckling 1976), pe sonal income axes, and subs i u e o ms o ax gains om in e es ,
such as dep ecia ion and amo iza ion (DeAngelo and Masulis 1980). The e o e, depending
on a ious ac o s, deb can impac i m pe o mance posi i ely o nega i ely. Simila ly,
Sainaghi e al. (2017) a gue ha , in he ou ism indus y, inancial le e age a ec s i m
pe o mance acco ding o he isk– ewa d p inciple. They sugges ha while highe isk
can lead o highe ewa ds, excessi e isk may ul ima ely esul in i m ailu e. On he
o he hand, in he ho el indus y, Wang e al. (2018) sugges ha le e age is expec ed o
ha e a nega i e impac on inancial pe o mance. They a gue ha highe le e age inc eases
he bu den o p incipal and in e es paymen s, which could c ea e sol ency p oblems o
he company. In he es au an indus y, Mao and Gu (2008) show ha deb has a nega i e
e ec on pe o mance. Se asquei o and Nunes (2008), using small and medium-sized
Po uguese companies’ samples om a ious indus ies, including ho els and es au an s,
and Pimi´c e al. (2024) ound ha liquidi y has a nega i e impac on business success o
ho els, jus i ied by he nega i e e ec o deb on capi al cos s.
Acco ding o he pecking o de heo y, sel - inancing is he p e e ed sou ce o com-
pany inancing, wi h deb being used only when e ained ea nings a e insu icien . Con-
sequen ly, companies wi h highe p o i abili y will gene a e mo e in e nal esou ces and
ha e a lowe le el o indeb edness (Mye s 1984), an icipa ing a nega i e ela ionship wi h
deb . In he ho el indus y, Bo a (2019) concludes ha ho el SMEs exhibi ypical pecking
o de beha iou and a e no pa icula ly conce ned wi h op imizing hei capi al s uc u e.
Con e sely, o he s udies sugges ha le e age is no ele an o inancial pe o mance
(e.g., Ne es e al. 2022).
Based on he e iewed li e a u e, he ollowing hypo hesis can be o mula ed:
Hypo hesis 4. Le e age has a signi ican impac on inancial pe o mance in he ho el indus y.
2.2. Mac oeconomic Fac o s
2.2.1. G oss Domes ic P oduc
Companies’ inancial decisions conside hei speci ic cha ac e is ics and a ious
o he ac o s, including economic condi ions. The ho el indus y, wi h i s highe ixed
cos s compa ed o a iable cos s, is pa icula ly sensi i e o he economy and changes in
economic condi ions (Chen 2010). Du ing he s udy pe iod (2016–2021), business ac i i y
was hea ily a ec ed by he c isis b ough abou by he COVID-19 pandemic. Acco ding
o he Na ional S a is ics Ins i u e, in 2016, he annual GDP change a e was 3.85%, which
d opped o
−
6.5% in 2020. A e his, in 2021, he economy s a ed eco e ing, and in 2021,
he annual GDP change a e was 7.7% (INE 2024a).
Economies 2024,12, 306 6 o 13
Good economic condi ions end o be e lec ed in a i m’s p o i abili y (Ga cia-Te uel
and Ma inez-Solano 2007), bu he e is no consensus ega ding he na u e o he impac .
Mos empi ical s udies suppo he idea ha economic expansion can s eng hen he
inancial pe o mance o ho els (e.g., Tang and Jang 2009). Howe e , Issah and An wi
(2017), o example, in es iga ing a ious sec o s o ac i i y, including “ho els, es au an s,
eal es a e ac i i ies, and elecommunica ions”, sugges ha eal GDP nega i ely a ec s
i m pe o mance, as measu ed by ROA. Chen (2010) explo es he e ec s o changes in he
s a e o he economy (GDP) and ou ism g ow h on he co po a e pe o mance o ho els
in Taiwan and inds ha only ou ism g ow h could s ongly explain he e u n on asse s
(ROA) and e u n on equi y (ROE).
We o mula e he i h hypo hesis based on he abo e a gumen s:
Hypo hesis 5. GDP in luences inancial pe o mance in he ho el indus y.
2.2.2. Consume Sen imen
The consume con idence index measu es he deg ee o op imism ha consume s
ha e ega ding he economy in gene al, p o iding a pic u e o he cu en economic
si ua ion o households. Consump ion includes household spending on goods and se ices,
which ca alyzes he coun y’s economic g ow h. Mo e posi i e consume sen imen will
a ec hei willingness o spend (Singal 2012;Chen 2015), which could a ou ably impac
he inancial p o i abili y o companies. Lemmon and Po niaguina (2006) ind ha he
consume con idence index (CCI) s ongly p edic s GDP and consump ion g ow h and can
be used as a p oxy o cap u e consume beha iou . Viei a e al. (2019), in hei s udy on he
de e minan s o he inancial pe o mance o lis ed companies, used he CCI o measu e
in es o sen imen . They ound ha his a iable does no a ec e u n on asse s (ROA).
Se e al au ho s associa e he CCI wi h ho el pe o mance (e.g., Singal 2012;Chen 2015;
Tang e al. 2017;Ozdemi e al. 2022). Conside ing he ho el indus y in he U. S., Singal
(2012) concludes ha CCI pa ly p edic s changes in u u e consump ion expendi u es. By
analyzing he consume con idence index among o he indexes de eloped by he O ganiza-
ion o Economic Coope a ion and De elopmen (OECD) and he occupancy a e o Hong
Kong ho els, Tang e al. (2017) concluded ha he consume con idence index was he
bes p edic o o ho el occupancy a es. Th ough media ion analysis,
Ozdemi e al. (2022)
p o ide e idence ha economic policy unce ain y a ec s ho el occupancy h ough i s
impac on consume sen imen in he U. S. economy. In his con ex , he au ho s sugges
ha du ing pe iods o g ea e unce ain y, ho el p ac i ione s should ely on hones and
anspa en communica ion wi h hei cus ome s and implemen selling s a egies o alle i-
a e consume conse a ism. Addi ionally, go e nmen policies should ocus on boos ing
consume con idence.
We p esen ou inal hypo hesis:
Hypo hesis 6. Consume sen imen in luences inancial pe o mance in he ho el indus y.
3. Me hodology
3.1. Da a and Va iables
This s udy is based on da a collec ed om he ORBIS da abase on 1372 ho el companies
be ween 2016 and 2021. De eloped by Bu eau an Dijk, his da abase includes inancial
and economic da a on Eu opean companies. O he 1372 ac i e ho el companies classi ied
unde NACE Re .2 code 55.10—Ho els and simila accommoda ion, 634 companies we e
excluded due o incong uous o missing da a. This esul ed in a sample o 738 ho el
companies. The six-yea ime ame is signi ican as i encompasses wo dis inc economic
scena ios impac ing he ho el indus y. Thus, he pe iod includes a phase o g owing
demand (2016–2019), ollowed by a signi ican decline ela ed o he global economic c isis
igge ed by he COVID-19 pandemic. We elimina e he e ec o in la ion on all mone a y
Economies 2024,12, 306 7 o 13
alues by de la ing hem using he Po uguese Consume P ice Index o es au an s and
ho els (base yea : 2016), ob ained om he Na ional S a is ics Ins i u e (INE 2024b).
Based on he li e a u e e iew, we conside ed he ollowing a iables, summa ized in
Table 1.
Table 1. Va iables.
Va iables P oxy Au ho s
Dependen a iable
Re u n on asse s (ROAi, )EBIT
To al asse s
Godda d e al. (2005); Ga cia-Te uel and Ma inez-Solano
(2007); Se asquei o and Nunes (2008); Chen (2010); Sand ik
e al. (2014); Issah and An wi (2017); Wang e al. (2018); Bo a
(2019); Ne es e al. (2022); Ka ano ic (2023).
Speci ic cha ac e is ics
Size (SIZEi, ) ln (To al asse s)
Godda d e al. (2005); Mao and Gu (2008); Se asquei o and
Nunes (2008); Chen (2010); Ben Aissa and Goaied (2016);
Lado-Ses ayo e al. (2017); Ne es e al. (2022).
Liquidi y (C i, )Cu en asse s
Cu en liabili ies
Mao and Gu (2008); Se asquei o and Nunes (2008); Wang e al.
(2018); Ne es e al. (2022).
Tangible asse s (TANi, )Tangible asse s
To al asse s Se asquei o and Nunes (2008); Bo a (2019).
Le e age (LEVi, )To al deb
To al asse s
Ga cia-Te uel and Ma inez-Solano (2007); Se asquei o and
Nunes (2008); Mao and Gu (2008); Ne es e al. (2022);
Ka ano ic (2023); Pimi´c e al. (2024).
Mac oeconomic ac o s
G oss domes ic p oduc (GDP) ln ((GDP −
GDP −1)/(GDP −1))
Ga cia-Te uel and Ma inez-Solano (2007); Chen (2010); Issah
and An wi (2017); Ne es e al. (2022).
Consume sen imen (CCI) Rep esen he consume
con idence index Chen (2015).
Dependen a iable: The e is no consensus on which a iables bes explain inancial
pe o mance. Howe e , some classic accoun ing a ios a e o en used in he hospi ali y
managemen li e a u e (e.g., Sainaghi e al. 2017;Bo a 2019). This s udy uses e u n
on asse s (ROA) as a p oxy o measu e inancial pe o mance. ROA is he mos used
accoun ing measu e o analyzing inancial pe o mance, de ined as he a io be ween
he ea nings be o e in e es and axes (EBIT) and o al asse s. I is an in es men -based
measu e ha allows o he assessmen o o e all managemen e ec i eness, bu i also
has disad an ages. Acco ding o Sand ik e al. (2014), ROA is posi i ely a ec ed by he
dep ecia ion o in es men s, such as ho el acili ies, while new in es men s con ibu e o a
lowe alue o his indica o .
Independen a iables: Ou ocus is he impac o wo di e en g oups on company
pe o mance measu es: i m-speci ic cha ac e is ics and ano he g oup comp ising eco-
nomic condi ion measu es. The la e g oup includes he economy
´
s o al p oduc ion and
se ices (g ow h a e o eal GDP) and he deg ee o consume op imism ega ding he
economy in gene al (consume con idence index (CCI)). To cap u e he o e all e ec s o
he business cycle on i ms’ inancial pe o mance, we also inco po a e a dummy a iable,
C isis. This a iable is se o 0 o he yea s when Po ugal expe ienced a pe iod o demand
g ow h (2016–2019) and 1 o all o he yea s, which co espond o a signi ican decline
associa ed wi h he global economic c isis induced by he COVID-19 pandemic. O he
s udies, such as Chen (2010) and Menicucci (2018), ha e explo ed he po en ial impac o
unexpec ed c ises on he ho el indus y.
Table 1p esen s all he a iables used in ou empi ical model based on he li e a u e
e iewed.
Economies 2024,12, 306 8 o 13
3.2. Model Es ima ion
Panel da a, by combining in e -indi idual di e ences wi h in a-indi idual dynamics,
p esen s se e al ad an ages o e c oss-sec ional o ch onological da a ha make i possible
o inc ease he e iciency o es ima es. Se e al au ho s (e.g., Bal agi 2008) poin o he
ad an ages o using panel da a as being ha (i) he he e ogenei y p esen in each indi idual
can be con olled o , i.e., can be con olled o unobse able ixed e ec s, which can bias
he coe icien es ima es; (ii) a g ea e numbe o obse a ions can be used, hus he e is
mo e in o ma ion and g ea e a iabili y in he da a, inc easing he numbe o deg ees o
eedom and educing any mul icollinea i y be ween he a iables, which in u n inc eases
he e iciency o he es ima es; (iii) he s udy o he dynamics o adjus men o changes
is acili a ed, by allowing he cha ac e iza ion o he esponses o di e en indi iduals o
ce ain e en s a di e en imes; (i ) e ec s ha canno be de ec ed by analyzing pu ely
c oss-sec ional o ch onological da a can be iden i ied and measu ed; and ( ) i allows o
he cons uc ion and es ing o mo e sophis ica ed models han hose possible wi h pu ely
c oss-sec ional o ch onological da a.
The panel da a mul iple linea eg ession model used in he analysis is as ollows:
ROAi =α+β1SIZEi +β2SIZE_dC isisi +β3C i +β4TANi +β5LEVi +β6GDPi +β7CCIi +µi+εi
The chosen es ima ion me hod o es ing he hypo heses is alida ed using se e al
diagnos ic es s: he Whi e and B eusch–Pagan/Cook–Weisbe g es s o assess he e oscedas-
ici y, he a iance in la ion ac o (VIF) o iden i y mul icollinea i y, B eusch and Pagan’s
Lag ange Mul iplie (LM) es o e alua ing indi idual company e ec s, he Robus Haus-
man es o di e en ia e be ween ixed e ec s and andom e ec s, and he Woold idge es
o de ec au oco ela ion.
4. Empi ical Resul s and Discussion
4.1. Desc ip i e S a is ics and Co ela ion Ma ix
Table 2displays he desc ip i e s a is ics o all he a iables (ROA, SIZE, C , TAN,
LEV, GDP, CCI, dC isis) and he co ela ion be ween he a iables. The desc ip i e s a is ics
show ha , on a e age, Po uguese ho el companies p esen a 4.3% e u n on asse s, 51.3%
o deb , 58.1% o angible asse s, and a high cu en a io. Among all a iables, he cu en
a io is he mos ola ile, ep esen a i e o he di e en o ms o managemen p esen in
he ho el indus y.
The co ela ion coe icien s show ha all independen a iables signi ican ly co ela ed
wi h ROA excep he cu en a io. The co ela ions be ween he independen a iables
a e low, excep o he co ela ion be ween he GDP and CCI a iables, which has an
associa ion le el o 54.11%, and be ween he CCI and dC isis a iables, wi h an associa ion
le el o 88.89%. To a oid ele an mul icollinea i y p oblems, he dC isis a iable will be
used in an in e ac i e a iable combined wi h SIZE—SIZE_dC isis.
Table 2. Desc ip i e s a is ics and co ela ion ma ix.
Desc ip i e S a is ics ROA SIZE C TAN LEV GDP CCI dC isis
Mean 0.043 8.647 6.654 0.581 0.513 3.301 −11.682 0.333
Maximum 1.089 13.84 6474.5 0.999 0.998 12.9 −4.553 1
Minimum −1.015 4.311 0.004 0 0.001 −16.7 −22.359 0
SD 0.116 1.292 106.163 0.323 0.251 6.116 6.447 0.471
Co ela ion
ROA 1
SIZE ***
−0.1198 1
C 0.0003 −0.0011 1
TAN ***
−0.2176
***
0.0551
***
−0.0639 1
