Effects of Search Volume Index On Return Of Hospitality Industry Stock

This study proposes a new indicator of stock price in hospitality industry by using the search volume index from search engine. The search volume index of a hotel is calculated by the customer’s search frequencies and can be treated as a proxy of customers’ attentions on the hotel. Therefore, search volume index is proposed to be used to predict the returns of the hotel’s stock. Monthly returns of all the stocks of hospitality industry in America market has been collected. A panel data model has been applied to analyze the effect of the search volume index of these hotels from Google Trends on their stocks returns. The result indicates that the hotel’s stocks will have excessive returns when it has gotten an abnormal search volume inde

The Establishment-Level Behavior of Vacancies and Hiring

This paper is the first to study vacancies, hires, and vacancy yields at the establishment level in the Job Openings and Labor Turnover Survey, a large sample of U.S. employers. To interpret the data, we develop a simple model that identifies the flow of new vacancies and the job-filling rate for vacant positions. The fill rate moves counter to aggregate employment but rises steeply with employer growth rates in the cross section. It falls with employer size, rises with worker turnover rates, and varies by a factor of four across major industry groups. We also develop evidence that the employer-level hiring technology exhibits mild increasing returns in vacancies, and that employers rely heavily on other instruments, in addition to vacancies, as they vary hires. Building from our evidence and a generalized matching function, we construct a new index of recruiting intensity (per vacancy). Recruiting intensity partly explains the recent breakdown in the standard matching function, delivers a better-fitting empirical Beveridge Curve, and accounts for a large share of fluctuations in aggregate hires. Our evidence and analysis provide useful inputs for assessing, developing and calibrating theoretical models of search, matching and hiring in the labor market.

Applications of event study methodology to lodging stock performance

This dissertation presents three studies applying event study methodology to lodging stock performance and exploring two primary research questions: (a) Is there abnormal stock performance for lodging stocks surrounding specified events that could indicate market inefficiencies that can be exploited by market actors, and, (b) Are there event study methodologies that are more or less robust for use in lodging stock event studies that should be considered in future research? The dissertation proposes revised procedures for addressing the methodological issues of non-normality and cross-sectional dependence in the data through the use of both parametric and nonparametric tests. The first paper, entitled Parametric and Nonparametric Analysis of Abnormal Stock Return and Volume Activity for Lodging Stock Mergers from 2004 to 2007, presents a study of the 19 public hotel companies that were merged during this period. The purpose of this study was to determine whether there were abnormal stock returns or volume activity in the periods surrounding the merger announcement date. The study identified statistically significant abnormal returns only on the merger announcement date and statistically significant volume activity only on the announcement date and thereafter. The second paper, entitled, Abnormal Stock Return and Volume Activity Surrounding CEO Transition Announcements for Lodging Companies, presents an investigation into whether or not there were abnormal stock market returns and volume activity for lodging stocks in the periods surrounding the announcement of Chief Executive Officer (CEO) transitions for these companies from 2003 to 2009. The study found that there were statistically significant negative abnormal returns in the periods prior to and after the announcement of a CEO transition. Statistically significant abnormal volume was identified in the period after the announcement of a CEO transition. The third paper, entitled The Impact of the Announcement of Weekly Lodging RevPAR on Lodging Stock Performance, presents an investigation on whether or not there were abnormal stock market returns on the announcement date of weekly RevPAR data by the lodging industry research firm STR. The study found that there were not statistically significant abnormal returns on the weekly RevPAR announcement date for the period from 2004 to 2009

Examining the Impact of STR Weekly RevPAR Announcements on Lodging Stock Returns

This study investigated whether or not there were abnormal stock market returns on the announcement date of weekly RevPAR (revenue per available room) data by the lodging industry research firm STR. Using event study methodology, the study found that there were not statistically significant abnormal returns on the weekly RevPAR announcement date for the period from 2004 to 2009. The implications of this study are important to the hotel investment community including lodging stock owners and investors, stock analysts, investment bankers, and consultants as it indicates that there is not advance trading in lodging stocks based on the STR weekly RevPAR announcements

Boston Hospitality Review: Summer 2013

Hospitality Management: Perspectives from Industry Advisors by Rachel Roginsky and Matthew Arrants -- Te Four ‘Ps’ of Hospitality Recruiting by John D. Murtha -- Te Morris Nathanson Design Collection by Christopher Muller -- Still Searching for Excellence by Bradford Hudso

The Impact of Data Breaches on Hotel and Restaurant Firm Stock Returns

Hospitality firms are susceptible to data breaches due to the high volume of information they keep on customers and employees. In this paper, we first present an analysis of the stock market’s reaction to data breaches at hospitality firms, and we compare these breaches to a matched-firm sample of retail firm breaches. Abnormal stock market returns indicate that hotel and restaurant firm stock prices went down by approximately 1.24% from data breach announcements. We find that the type of breach or number of times a firm has been breached does not alter the impact of a breach on firm returns. Additionally, we find that data breaches cause a greater loss of value for hotel firms than for restaurants. Finally, we find no support for the idea that hospitality firms exhibit larger negative effects compared to retail firms on a matched-pair analysis

Saving the Bed from the Fed

We estimate the reaction of the United States hotel and restaurant industries to the monetary policy actions of the U.S. Federal Reserve. We find that a portfolio of hotel industry stocks react strongly to unexpected changes in the federal funds target rate. Specifically, for a hypothetical surprise 25-basis-point rate cut, the value-weighted hotel industry stock portfolio registers a one-day gain of 245 basis points (or 2.45 percent). This response is 78-percent stronger than that of the overall equity market in the U.S. In addition, the price impact is stronger at times of policy reversals. On the other hand, the restaurant industry is not as responsive to unexpected changes in the monetary policy. To “save the bed from the Fed,” investors should first recognize the sensitivity of hotel stocks to changes in Fed policy and then engage in appropriate risk management activities, including hedging portfolio risk in the futures market

Demand uncertainty and investment in the restaurant industry

Since the collapse of the housing market, the prolonged economic uncertainty lingering in the U.S. economy has dampened restaurant performance. Economic uncertainty affects consumer sentiment and spending, turning into demand uncertainty. Nevertheless, the highly competitive nature of the restaurant industry does not allow much room for restaurants to actively control prices, leaving most food service firms exposed to demand uncertainty. To investigate the impact of demand uncertainty in the restaurant industry, this study focused on the implications of demand uncertainty for investment. The first essay in chapter 3 examined the impact of demand uncertainty on investment and how the impact varies with industry-specific features: franchising and segment. The results showed that the investment rate decreases with the level of uncertainty and the association is nonlinear. That is, the investment drops more rapidly as the level of uncertainty increases. This study further revealed that there is no significant moderating effect of franchising on the uncertainty-investment relationship. When it comes to segment, full-service restaurants are more adversely affected by demand uncertainty than limited-service restaurants. The second essay in chapter 4 explored how managers cope with uncertainty when making investment decisions. In the absence of a clear imperative of what is efficient, managers are likely to scan other peers in the market and mimic their behavior. Focusing on this idea, it tested whether the investment is influenced by peers’ investment activities and whether peer-sensitive firms produce better investment outcomes. Consistent with the hypotheses, sample restaurant firms appeared to be affected by their peers in making investments. The results also indicate that uncertainty is a powerful force that leads firms to follow peers. In addition, it was seen that investment of peer-sensitive firms is not as effective as that of less-sensitive firms in growing market share. Lastly, the final piece of dissertation in chapter 5 analyzed the effectiveness of investment made under uncertainty. The findings indicate that a rise in investment in times of high uncertainty leads to a larger market share, suggesting that well-targeted investment can help firms turn crisis into opportunity to pull ahead of competitors who retreat in the face of uncertainty. However, increased depreciation costs and dwindling sales can hurt the profit margin in uncertain times

Review on financial risk procedures for assessing companies regard to young customers

Financial risk procedures are used by financial analysts for their researches. In this paper we present a sum-up of manager’s tools for assessing the liquidity and activity ratios of its company and a series of financial risk procedures. We descriptive investigate various financial risk procedures present in financial literature and we identify the predictive ability of the risk groups for assessing the performance and the risk of a company. Our purpose is to get a direct relationship between risk and performance.ratios; financial risk procedures; performance; bankruptcy; stock performance; strategic procedures.