Determinants of Tunisian hotel profitability: The role of managerial efficiency

Aissa, Sami Ben; Goaïed, Mohamed

doi:10.1016/j.tourman.2015.07.015

Cited by 119 publications

(125 citation statements)

References 56 publications

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“…It reflects financial performance of a firm by measuring how efficiently a firm creates profits using its assets during a year. It shows the ability of the firm's management to produce profit from the company's assets (Aissa and Goaied, 2016). In the previous studies, Garcia-Teruel and Martinez-Solano (2007), Zubairi (2010), and Enqvist et al (2014) used ROA as a proxy for company profitability.…”

Section: Variable Description and Hypothesesmentioning

confidence: 99%

Factors Affecting the ProfitabilitFactors Affecting the Profitability of Indonesian Real Estate Publicly-listed Companiesy of Indonesian Real Estate Publicly-listed Companies

Diaz¹,

Hindro²

2017

AJFA

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The research studies the relationship between eight firm-specific factors on the profitability of large-, medium-, and small-scale real estate Indonesian companies. The data uses forty-seven real estate companies listed in the Indonesian Stock Exchange from 2010 to 2014. The study utilized multiple linear panel regression models, namely, ordinary least squares (OLS), fixed effects (FE) and random effects (RE) in examining the effect on the return on asset of firm-specific factors, which include: number of days account receivables, number of days inventory, number of days of account payable, size of the company, current ratio, debt ratio, sales growth, and tangibility. Empirical findings show that the number of days account receivable has negative relationship with profitability, but it has no effect on medium-size Indonesian real estate companies. The factor number of days inventories has negative relationship in small-size companies, but the inverse is true for large companies, because large real estate firms have more liquid assets that covers maintenance costs related to real estate inventories. Size and sales growth have positive relationship on profitability for both large and small Indonesian real estate firms. On one hand, current ratio has positive relationship in large companies, while a negative relationship was found in small companies, because of the lower current asset base usually being experienced by smaller real estate firms. ISSN 1946-052X 2017 Lastly, tangibility has negative relationship with profitability for large companies, while the opposite is true for medium-sized real estate firms. Findings of this research are strong in using two panel regression models, and can help real estate managers have a general perspective regarding determinants of profitability in the expanding Indonesian market. This study also provides fresh perspectives in creating suitable strategies to controlling factors that maximizes profitability. Asian Journal of Finance & Accounting

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Section: Variable Description and Hypothesesmentioning

confidence: 99%

Factors Affecting the ProfitabilitFactors Affecting the Profitability of Indonesian Real Estate Publicly-listed Companiesy of Indonesian Real Estate Publicly-listed Companies

Diaz¹,

Hindro²

2017

AJFA

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“…A positive impact of efficiency on profitability was confirmed by Aissa and Goaied (2016), Guillén, Rengifo and Ozsoz (2014), Fageda and Voltes-Dorta (2012), Mostafa (2010) or Greene and Segal (2004), among others. On the contrary, Palečková (2015), Shieh (2012), Keramidou et al (2013) or Olson and Zoubi (2011) identified only a small or no relationship between efficiency and profitability.…”

Section: Literature Reviewmentioning

confidence: 85%

“…Despite the existence of many studies focusing on the link between efficiency and profitability, little attention has been paid to this relationship in the tourism sector. We have found only two studies that examined hotels (Aissa andGoaied, 2016 andShieh, 2012) and one paper dealing with travel agencies (Sellers-Rubio and Nicolau-Gonzálbez, 2009). Aissa and Goaied (2016) examined 27 hotels operating in Tunisia and used the DEA approach to measure efficiency and the ROA indicator for profitability performance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…We have found only two studies that examined hotels (Aissa andGoaied, 2016 andShieh, 2012) and one paper dealing with travel agencies (Sellers-Rubio and Nicolau-Gonzálbez, 2009). Aissa and Goaied (2016) examined 27 hotels operating in Tunisia and used the DEA approach to measure efficiency and the ROA indicator for profitability performance. Regression results show the significant influence of a hotel's efficiency on its profitability performance.…”

Section: Literature Reviewmentioning

confidence: 99%

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Is profitability a good proxy for efficiency? Evidence from the subsector of tour operators

Hedija

Fiala

Kuncová

2017

Review of Economic Perspectives

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Abstract:The goal of the paper is to evaluate the economic efficiency of tour operators in the Czech Republic in the period 2007-2014 using data envelopment analysis (DEA) models and prove the link between economic efficiency and profitability and to find out if profitability is a good proxy for economic efficiency. Data was exported from the database Albertina CZ Gold Edition. We calculated the efficiency score using CCR (Charnes, Cooper and Rhodes) and BCC (Banker, Charnes and Cooper) models based on 3 inputs and 1 output. In the years 2007 to 2010, the efficiency score of almost all the companies was higher than 0.5; however, in years since 2011, we revealed significant differences in the efficiency of individual firms and only about 40 percent of tour operators achieved an efficiency score higher than 0.5. Using Pearson and Spearman correlation coefficients, our findings show that, in the case of the Czech tour operator market, profitability ratios do not correspond with firm efficiency. Profitability ratios are not a good proxy for economic efficiency and should not be used as the only firm criterion of performance.

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“…One example of a strategic decision, burdened with high investment risk, is the choice of hotel location. Through the impact on the costs and revenues, it affects a hotel's profitability (Aissa & Goaied, 2016) and other indicators of economic efficiency (Chung & Kalnins, 2001;Sainaghi, 2011;Lado-Sestayo, Otero-González & Vivel-Búa, 2014;Parte-Esteban & Alberca-Oliver, 2015;Sohrabi et al, 2012;Lockyer, 2005;Łoś, 2012). The hotel's location is important for the costs of acquisition of land, construction of the hotel building and its operation (Silva, 2015).…”

Section: Introductionmentioning

confidence: 99%

Location Factors of Foreign and Domestic Investors in Hospitality Industry in Poland

Puciato

Gawlik

Goranczewski

2017

IJCM

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Determinants of Tunisian hotel profitability: The role of managerial efficiency

Cited by 119 publications

References 56 publications

Factors Affecting the ProfitabilitFactors Affecting the Profitability of Indonesian Real Estate Publicly-listed Companiesy of Indonesian Real Estate Publicly-listed Companies

Factors Affecting the ProfitabilitFactors Affecting the Profitability of Indonesian Real Estate Publicly-listed Companiesy of Indonesian Real Estate Publicly-listed Companies

Is profitability a good proxy for efficiency? Evidence from the subsector of tour operators

Location Factors of Foreign and Domestic Investors in Hospitality Industry in Poland

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