Analysis of Firm-Specific and Macroeconomic Factors Affecting the Performance of Hotel Sector in United Kingdom: Profitability and its Determinants

Tan, Mei Syen (2019): Analysis of Firm-Specific and Macroeconomic Factors Affecting the Performance of Hotel Sector in United Kingdom: Profitability and its Determinants.

Abstract

This study looking for the determinants that may affect the profitability in the hotel sector in United Kingdom. The goals is to identify the firm-specific factors, macroeconomic factors and the firm-specific and macroeconomic factors that may affect the profitability. The approach used in this research is the statistical and regression techniques which test for the association of these variables the level of significance. Upon these considerations are discussed, the liquidity risk and credit risk have greatest impact on productivity. This will allow greater consideration of competitiveness for other business field and may lead to the future work on the profitability determinant.

• Item Type: MPRA Paper
• Language: English
• Keywords: Profitability, Liquidity risk, Credit risk
• Subjects: G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M38 - Government Policy and Regulation; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M48 - Government Policy and Regulation

References

Safdat Hussain Tahir, Hazoor Muhammad Sabir, Adnan Arsshed, Muhammad Anwar ul Haq (1999). Two-tier Corporate Governance Model for Parkistan.

Bikker, J.A and H.Hu(2001). Cyclical Patterns in Profits, Provisioning and Lending of Banks and Procyclicality of the New Basle Capital Requirements. Retrieved December 2001, from https://www.dnb.nl/binaries/ot039_tcm46-146052.pdf

Ministry of Trade and Industry Singapore (2012). Economic survey of Singapore. Retrieved 17 September 2017, from https://www.mti.gov.sg/-/media/MTI/Resources/Economic-Survey-of-Singapore/2017/Economic-Survey-of-Singapore-2017/fullreport_aes2017.pdf

Barajas, A., Steiner, R., Salazar, N., 1999. Interest Spreads in Banking in Colombia 1974-96. IMF Staff Papers. Retrieved June 1999, from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.203.5229&rep=rep1&type=pdf

Wenqin Fan, & Weixian Dong Jie Luo (2018). The Causes of Financial Risk in Enterprises and its precaution. Retrieved 2018, from https://pdfs.semanticscholar.org/9a97/68449124a81e16db7036aa9511760af67173.pdf

Maleya M. Omondi, & Willy Mwangi Muturi (2013). Factors Affecting the Financial Performance of Listed Companies at the Nairobi Securities Excjhange in Kenya. Retrived 2013, from https://pdfs.semanticscholar.org/2ede/f54c2db329d2a4412aa8c1b00da53c338d4a.pdf?_ga=2.110469957.1764916618.1573463458-1656573979.1569777425

J.B Maverick (June 23, 2015). What are the key differences between financial risk and business risk to a company. Retrieved 2015, from https://www.academia.edu/30238728/What_are_the_key_differences_between_financial_risk_and_business_risk_to_a_company_Investopedia

Camelia Burja (2011). Factors Influencing the Companies’ Profitability. Retrieved 2011, from https://ideas.repec.org/a/alu/journl/v2y2011i13p3.html

Patrick McColgan (May 22, 2001). Agency theory and corporate governance a review of the literature from a UK perspective. Retrieved 2001, from https://pdfs.semanticscholar.org/79c5/2954af851c95a27cb1fb702c23feaae86ca1.pdf

Edward I. Altman, Alessandro Danovi and Alberto Falini (2013). Z-score Models’ Application Companies Subject to Extraordinary Asministration. Retrieved 2013, from http://people.stern.nyu.edu/ealtman/BOZZA%20ARTICOLO%2017.pdf

Robert C.Merton (May 1974). On the Pricing of Corporate Debt: The Risk Structure of Interest Rate. Retrieved from https://onlinelibrary.wiley.com/doi/10.1111/j.1540-6261.1974.tb03058.x

Andreas(Andy) Jobst(May 16, 2007). The Economics of Islamic Finance and Securitization. Retrieved May 2007, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=986814

Jamal Ali Mohamed Noor(2014). Effects of Market Risk on Performance of Transport Firms in Kenya. Retrieved from file:///C:/Users/ASUS/Downloads/1493-Article%20Text-2755-1-10-20180104.pdf

Hendricks and Hirtle (December 1997). Bank Capital Requirements for Market Risk: The Internal Models Approach. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1016133

M. Hull, R. & Dawar, V. (2014). Agency theory, capital structure and firm performance: some Indian evidence. Managerial Finance, Vol. 40 No. 12, pp. 1190-1206. https://doi.org/10.1108/MF-10-2013-0275

Eitokpa, O.H., 2015. Determinants of financial performance of listed foods and beverages companies in Nigeria (Doctoral Dissertation).

Steven M.Bragg, CPA. IFRS Guidebook 2018 Edition (November 21, 2017). Accounting Tools, Inc.

OCED Principles of Corporate Governance (1999). Leedy, D. P., Ormrod, J. E. (2001). Practical Research: Planning and Design (7th ed). New Jersey: Merrill Prentice Hall

Landau, S & Everitt, S, B, 2004, A handbook of statistical analyses using SPSS, CRC Press LLC, Florida. Albertazzai, U., & Gambacorta, L.(2009). Bank profitability and the business cycle. Journal of Financial Stability, 5(4), 393-409

Noor Hashim Mohammed (2016). The impact of liquidity risk, credit risk and operational risk on the performance of Iraqi private banks.

Curak, M., Poposki, K., & Pepur, S. (2012). Profitability determinants of the Macedonian banking sector in changing environment. Procedia-Social and Behavioral Sciences, 44, 406-416.

Guru, B. K., Staunton, J., & Balashanmugam, B. (2002). Determinants of commercial bank profitability in Malaysia. Journal of Money, Credit, and Banking, 17, 69-82.

Samuel, O.T. and Abdulateef, Y., 2016. Liquidity management and profitability of listed food and beverage companies in Nigeria. IOSR Journal of Business and Management, 18(2), pp.167-176.