No abstract

Due to the fast growing hotel industry in Taiwan, recent hospitality studies has paid attention to how various factors affect the Taiwanese hotel performance and offered interesting and valuable findings. To expand the financial literature of the Taiwanese hotel industry and the hospitality literature as a whole, this article is the first hospitality study to investigate how board size affects firm performance of publicly traded hotels in Taiwan. Panel regression test results reveal an interesting finding. Specifically, there is an inverted U-shaped relationship between board size and hotel performance in terms of return on assets, return on equity, and Tobin’s Q with an optimal value of board size equal to 10. This indicates that while board size up to 10 has a positive impact on hotel performance (supporting the resource dependence theory), board size can deteriorate hotel performance when it is larger than 10 (supporting the agency theory).

This paper applies Nonlinear Autoregressive Distributed Lag model to examine the effects of geopolitical risks (GPRs) on Turkey's tourist arrivals (TAs) from January 1990 to December 2018. The newly developed Geopolitical Risk Index (GPRI) is used to measure GPRs. Test results reveal interesting findings. While the effects of GPRs on TAs are expected, the effects are found to be asymmetric in the short-run. Specifically, an increase in GPRI reduces TAs in Turkey, but a decrease in GPRI has no effect in the short-run. Moreover, there is no evidence for such an asymmetry in the long-run.