Investigating the differences in corporate governance between hospitality and nonhospitality firms
Prior research suggests that hospitality firms behave differently than other firms in terms of financing and investment issues. Such behavior may be attributable in part to agency problems and corporate governance structures in hospitality firms. This paper contains a report of an investigation into...
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Published in | Advances in Hospitality and Leisure Vol. 5; pp. 125 - 140 |
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Main Authors | , |
Format | Book Chapter |
Language | English |
Published |
Emerald Group Publishing Limited
01.01.2009
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Online Access | Get full text |
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Summary: | Prior research suggests that hospitality firms behave differently than other firms in terms of financing and investment issues. Such behavior may be attributable in part to agency problems and corporate governance structures in hospitality firms. This paper contains a report of an investigation into whether corporate governance mechanisms differ in hospitality firms relative to other industries. Our findings suggest that hospitality firms are more likely to experience agency problems than are nonhospitality firms. Hospitality firms have lower governance control mechanisms, better financial performance and higher-quality earnings than nonhospitality firms. An understanding of corporate governance control mechanisms helps to reduce agency problems and improves the hospitality firm's performance in the hospitality corporation. |
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ISBN: | 9781848556744 1848556748 |
ISSN: | 1745-3542 |
DOI: | 10.1108/S1745-3542(2009)0000005011 |