Phillips, P., Page, S. and Sebu, J. (2020). Achieving research impact in tourism: Modelling and evaluating outcomes from the UKs Research Excellence Framework. Tourism Management [Online] 78. Available at: https://doi.org/10.1016/j.tourman.2019.104072.
The marketisation of higher education has emerged as a global trend with a focus on using metrics to assess performance. This has led to the closer scrutiny by government in assessing value for money and effectiveness of research outcomes in national allocations of research funding. This paper focuses on one controversial strand of assessing research outcomes - the area of research impact. The paper examines the experiences of the UKs Research Assessment Exercise in 2014 and the tourism impact case studies developed as part of institutional submissions on research impact. The paper examines the case studies using Qualitative Comparative Analysis (QCA), which is a set-theoretic method, to identify what a high quality impact case study looks like from a range of criteria. The paper derives a wider range of implications for tourism scholars that has wider application across other areas in which Tourism is located.
Phillips, P., Antonio, N., de Almeida, A. and Nunes, L. (2020). The Influence of Geographic and Psychic Distance on Online Hotel Ratings. Journal of Travel Research [Online] 59:722-741. Available at: https://doi.org/10.1177/0047287519858400.
This study examines the relationship between distance measures and a Portuguese data set consisting of 34,622 online hotel reviews extracted from Booking.com and TripAdvisor written in Portuguese, Spanish, and English. Based on the country of origin of each review author, a geographic and a psychic distance measure is calculated for Portugal. Data and text mining analysis provides additional insights into online hotel ratings. The authors confirm that online travelers’ evaluations are multifaceted constructs displaying varying patterns of rating behavior among the traveler base. By investigating the contemporary relevance of geographic and psychic distance, a key finding of this study is that travelers with less distance both in terms of psychic and geographic distance give a lower rating score than travelers with greater distance. The inclusion of psychic and geographic distance is advocated as a salient aspect for future researchers and for those practitioners who wish to enhance hotel product and service features.
Van Riel, A., Zhang, J., McGinnis, L., Nejad, M., Bujisic, M. and Phillips, P. (2019). A Framework For Sustainable Service System Configuration: Exploring Value Paradoxes With Examples From the Hospitality Industry. Journal of Service Management.
Sainaghi, R., Phillips, P. and d’Angella, F. (2019). The balanced scorecard of a new destination product: Implications for lodging and skiing firms. International Journal of Hospitality Management [Online] 76:216-230. Available at: https://doi.org/10.1016/j.ijhm.2018.05.011.
New product development (NPD) is a counter-seasonal strategy able to reduce demand fluctuations, especially
during the seasonal tails. No previous study has analysed this field through the lens of balanced scorecard (BSC).
This explorative paper contributes to this gap and considers two research questions: i) How is a destination NPD
process operationalized using the four BSC perspectives? ii) What is the relevance and content of each perspective
in this particular field?
The study deploys a longitudinal analysis of the Skipassfree product, launched by Livigno (Italy) in 2007.
Over a decade, this product generated a significant uplift both in terms of hotel guests (+108%) and ski
company clients (+248%). The proposed framework is built around 22 codes and incorporates a fifth BSC
perspective (the destination context). “Learning and growth” is the most significant perspective with “alignment”
being a key attribute, which suggests the relevance of innovation and stakeholders’ involvement.
Sainaghi, R., Phillips, P., Baggio, R. and Mauri, A. (2018). Hotel performance: Rigor and relevant research topics. International Journal of Hospitality Management [Online] 78:13-26. Available at: https://doi.org/10.1016/j.ijhm.2018.11.008.
Academic research (rigor) in alignment with practitioners’ challenges (relevancy) has been advocated as a way of overcoming the ivory tower syndrome. Performance measurement is at the heart of strategic management processes, as it provides a mechanism of demonstrating outcomes. Given the importance of this topic for both theory and practice, this article explores the contribution of academic outputs in terms of academic research outputs (rigor) and current practitioners’ needs (relevancy).
Using network analysis and cross-citation bibliometric approaches, a sample of 1,155 articles is examined and fourteen clusters are identified. The emergent topics and subtopics from the academic literature are compared to ten insights proposed by Ernst Young to the hotel sector. The findings suggest a good fit between the two approaches together with some gaps. Based from empirical results, nine propositions are articulated.
Sainaghi, R., Phillips, P., Baggio, R. and Mauri, A. (2018). Cross-citation and authorship analysis of hotel performance studies. International Journal of Hospitality Management [Online] 73:75-84. Available at: https://doi.org/10.1016/j.ijhm.2018.02.004.
This study develops a literature review of hotel performance studies, and provides insights by adopting a cross-citation network approach. Two research questions are defined. First question focuses on the most cross-cited papers and journals, and identifies salient trends. Second question considers who are the most popular cross-cited and citing authors. This work is rooted in bibliometric studies, and adopts a relational approach. Based on cross-citations, a network is built by using 734 papers published during the period 1996–2015, as nodes and the cross-citations between them as links. Exploratory analysis reveals spectacular growth of outputs, with the last time period (2011–2015) including 56% of outputs. The most cross-cited papers possess the characteristics of: being older; representing 1% of sample but accounting for 14% of cross-citations. The 734 papers are published in 164 journals, but they show a clear core-periphery structure with International Journal of Hospitality Management ranked first.
Godinho, P., Phillips, P. and Moutinho, L. (2018). Hotel location when competitors may react: A game-theoretic gravitational model. Tourism Management [Online] 69:384-396. Available at: https://dx.doi.org/10.1016/j.tourman.2018.06.014.
This paper presents a hotel location model that incorporates concepts from both game theory and gravitational site location models. We consider a hotel chain intending to build new hotels in a given region. Customers travel to the region to visit some specific points, termed “attractions”, and they choose a hotel according to room price, location and hotel attractiveness. Competitor hotels react to the new hotels by changing prices, in order to maximize their own profits, so the final set of prices will be a Nash equilibrium. We propose an iterative procedure for finding the equilibrium prices and a genetic algorithm-based procedure for finding the optimal strategy, in terms of new hotels to be built and respective typologies. Using a mini case, we illustrate and analyse the influence of several parameters. Then, we present computational experiments, concluding that the proposed procedures are effective in finding good solutions for the model
Sainaghi, R., Baggio, R., Phillips, P. and Mauri, A. (2018). Hotel Performance and Research Streams: A Network Cluster Analysis. International Journal of Contemporary Hospitality Management [Online] 30. Available at: https://doi.org/10.1108/IJCHM-05-2017-0260.
Purpose: This article provides a review of hotel performance within the hospitality and tourism research domain. We use network analysis to examine two research questions. The first relates to ascertaining general trends within the hotel performance literature, and the second focuses on identifying the salient streams and sub-topics.
Methodology: Articles were selected according to three criteria: keywords, journals, and year of publication. The analysis embraces 20 years (1996-2015). These choices assure a wide coverage of the literature. Using these three criteria, the sample includes 1,155 papers. For the analysis, we created a network of papers designated as nodes, and the citations among the papers as links. A network approach recognizes the internal structure of the network by identifying groups of nodes (papers) that are more densely connected between themselves than to other nodes within the network (modules, clusters or communities).
Findings: We found 761 papers that were “connected” studies within the network. By contrast, 34% of sample (394 papers) consists of “unconnected” studies. Excluding outliers, the net sample was 734 articles. We identify 14 clusters, which we break down into several sub-topics. We conclude by providing some conclusions regarding trends and future research directions. With regards to salient topics, cross-citation and network analysis provide a detailed picture of where the literature comes from and where it currently stands. Conclusions are articulated at the theoretical and empirical levels.
Originality: Compared to previous hotel performance reviews, the approach followed by this study enables the discovery of an analytical research map, which is able to identify both clusters and sub-topics populating each segment. Researchers are able to position their work and identify issues that are in growth and decline.
Phillips, P., Moutinho, L. and Godinho, P. (2017). Developing and testing a method to measure academic societal impact. Higher Education Quarterly [Online]. Available at: https://doi.org/10.1111/hequ.12154.
This paper aims to extend understanding of the business and societal impact of academic research. From a business school perspective, it has taken stock of the role of academic research and relevance in business and society. The proposed conceptual framework highlights the forces influencing the pursuit of academic rigour and relevance in scholarly outputs. A theoretical model for measuring the societal impact of academic journal articles—the Academic Rigour and Relevance Index (AR2I)—was developed. This index comprises six key parameters, which are assessed by three stakeholder groups connected with academic research into business issues, these groups being: business practitioners, society and academics. The behaviour of the AR2I model was evaluated using the Monte Carlo simulation model. Taking into account the relationships between the standard deviations and the differences of classification between articles with different levels of rigour and relevance, it is demonstrated that the AR2I model is an effective tool.
Sainaghi, R., Phillips, P. and Zavarrone, E. (2016). Performance Measurement in Tourism Firms: A Content Analytical Meta-approach. Tourism Management [Online] 59:36-56. Available at: http://dx.doi.org/10.1016/j.tourman.2016.07.002.
This paper performs a meta-analysis of tourism performance measurement by synthesising tourism and hospitality research. A framework for understanding and advancing knowledge about tourism performance measurement is presented to overview three important dimensions of the tourism performance measurement literature (unit of analysis, approaches and disciplines). Computer-Aided Text Analysis of 978 articles covering a nineteen-year period, 1996 to 2014, is used to analyse approaches and disciplinary contexts. Specifically, we aim to advance a concrete understanding of tourism firms’ performance measurement literature and to assess whether the temporal trends in performance measurement literature will help position tourism firms for the emerging tourism context. We propose some key research areas to guide a future tourism performance measurement research agenda
Phillips, P., Barnes, S., Zigan, K. and Schegg, R. (2016). Understanding the impact of online reviews on hotel performance: an empirical analysis. Journal of Travel Research [Online] 56:235-249. Available at: http://dx.doi.org/10.1177/0047287516636481.
Understanding consumers’ needs and wants has been a major source of success for hotel organizations. Notwithstanding, investigating the valence of online reviews and modeling hotel attributes and performance is still a rather novel approach. Using partial least squares path modelling, Swiss country-level data for online reviews from 68 online platforms, together with data from 442 hotels, we test eleven hypotheses. Our research model includes three distinctive areas of the hotel: physical aspects; quality of food and drink; and human aspects of service provision. RevPar and occupancy are employed as performance metrics. We also test for mediation effects. Results indicate that hotel attributes, including the quality of rooms, Internet provision and building show the highest impact on hotel performance, and that positive comments have the highest impact on customer demand. This study contributes to theories of valence on hotel performance and presents salient implications for practitioners to enhance performance.
Lipitakis, A. and Phillips, P. (2015). On e-business strategy planning and performance: a comparative study of the UK and Greece. Technology Analysis and Strategic Management [Online] 28:1-23. Available at: http://dx.doi.org/10.1080/09537325.2015.1094568.
In this research study the effect of Financial and Non-Financial performance of organisations on e-business strategy planning is investigated. The strategic planning parameters of Phillips model are examined when applied to e-business strategy planning. The relationships between these parameters, that is, Formality, Participation, Sophistication and Thoroughness, and Financial and Non-Financial Performance, are examined and the directions of these relationships are investigated. A conceptual model has been constructed and quantitative research methods are used to test four hypotheses. The proposed e-business model was tested in two EU countries, the UK and Greece. A synoptic statistical analysis and comparative numerical results are given showing that in both countries Participation has a positive relationship with Financial Performance and Formality has a positive relationship with Non-Financial Performance. The proposed model is extendable and valid in countries other than the UK and Greece, thus being able to be adapted to and used in other national environments.
Phillips, P., Zigan, K., Santos Silva, M. and Schegg, R. (2015). The Interactive Effects of Online Reviews on the Determinants of Swiss Hotel Performance: A Neural Network Analysis. Tourism Management [Online] 50:130-141. Available at: http://dx.doi.org/10.1016/j.tourman.2015.01.028.
From a strategy perspective, the growth of social media accelerates the need for tourism organisations to constantly re-appraise their competitive strategies. This study contributes theoretically to the tourism performance literature by validating a new approach to examining the determinants of hotel performance. Drawing from and extending prior hotel determinants studies, this study uses artificial neural network model with ten input variables to investigate the relationships among user generated online reviews, hotel characteristics, and Revpar. The sample includes 235 Swiss hotels for the period 2008-2010, with 59,688 positive reviews from 69 online sources. The empirical findings reveal four hidden nodes that have a significant impact on RevPar. Three of these have negative impacts: room quality, positive regional review, hotel regional reputation, and regional room star rating has a positive impact. Further, the findings imply that there may be boundaries to reputational benefits for Swiss hotels.
Phillips, P. and Moutinho, L. (2014). Critical review of strategic planning research in hospitality and tourism. Annals of Tourism Research [Online] 48:96-120. Available at: https://dx.doi.org/10.1016/j.annals.2014.05.013.
Strategic planning remains one of the most popular management tools, but theoretical and empirical developments in the academic literature have been a slow burn. This paper addresses this gap and provides an up-to-date review of hospitality and tourism strategic planning research. We review strategic planning research from 1995 to 2013 in seven leading tourism academic journals, and adopt a modern and broad conceptualization of strategic planning. While there is some awareness of effective tourism strategic planning processes, academic research has not kept pace with practice. To stimulate a resurgence of research interest, we provide future research directions. We observe a methodological introspection and present some new research methodologies, which are critically important in researching the turbulent, chaotic and nonlinear tourism environment.
Sainaghi, R., Phillips, P. and Corti, V. (2013). Measuring Hotel Performance: Using a Balanced Scorecard Perspectives’ Approach. International Journal of Hospitality Management [Online] 34:150-159. Available at: http://dx.doi.org/10.1016/j.ijhm.2013.02.008.
This paper provides an examination of hotel performance research published in the seven leading hospitality and tourism journals from 1992 to 2011, through the lens of the balanced scorecard (BSC). The review seeks to answer three questions. What BSC perspectives are included in hotel performance research published in major hospitality and tourism journals? What are the trends and implications for future hotel performance research? What are the main geographical areas of publication outputs?
Eleven hypotheses were tested using a database of 138 articles that fully met the key word selection criteria of hotel, BSC and performance. The results suggest hotel performance attracts widespread attention from hospitality scholars, but significant gaps remain. Researchers have recognised the benefits of including financial and non-financial indicators. Yet, more research is required in this area to offer hotel organisations better approaches to the management of their performance. We conclude by identifying three research gaps.
Soltani, E., Phillips, P., Azadegan, A. and Liao, Y. (2011). Quality Performance in a Global Supply Chain: Finding Out the Weak Link. International Journal of Production Research [Online] 49:269-293. Available at: http://dx.doi.org/10.1080/00207543.2010.508955.
Much has been written on the intensive interconnection between supply chain management (SCM) and quality management (QM) with a particular focus on the systems-based view as the common thread between these two operation management topics. Absent in this debate has been any examination of the dynamics of SCM and QM practices and the resultant implications for the end customer in terms of product/service quality at a global level. In consequence, the nature and extent of their interconnection or interlinking and the resultant implications for the product/service quality has remained tangential. Using a qualitative study of two very large branded athletic and casual sports apparel and footwear manufacturers based in Asia with world-wide suppliers and distribution centres, this study aims to broaden the debate by arguing that partnering with suppliers of high QM capabilities in chains of relationships does not necessarily result in downstream benefits to both the manufacturer and end customers. We argue that both SCM and QM practices must advance from traditional firm-driven, fire fighting and product-focused mindsets to a more collaborative mode of inter-firm relations in that a much greater level of co-operation among both upstream and downstream chains is regarded as a key to competitive advantage.
Phillips, P. and Wright, C. (2009). E-business’s Impact on Organizational Flexibility. Journal of Business Research [Online] 62:1071 -1080. Available at: http://dx.doi.org/10.1016/j.jbusres.2008.09.014.
Organizations are finding that their ability to respond to unpredicted changes in the market is becoming a key factor in survival. The ability to adjust e-business processes to customer preferences (flexibility) has become a necessity for online systems. Despite the interest in e-business flexibility the academic literature has not kept pace with industrial developments. This research study builds upon previous work through two investigations. First, the results of five case studies are used to develop a seven (alliance/joint decision management and intelligence, enterprise-wide change management, organizational learning, process oriented agility, network centric information management, leadership of transformation and knowledge exchange meetings) factor model that depicts the influences of flexibility on organizational effectiveness in e-business environments. Second, this paper illustrates how the model can be used as a benchmarking tool and has the potential to become a key learning mechanism. The authors discuss the conclusions and managerial implications of the findings.
Anastassopoulos, G., Filippaios, F. and Phillips, P. (2009). An Eclectic Investigation of Tourism Multinationals: Evidence from Greece. International Journal of Hospitality Management [Online] 28:185-194. Available at: http://dx.doi.org/10.1016/j.ijhm.2008.06.014.
This paper analyses determinants of profitability differences between subsidiaries of multinational enterprises (MNEs) and domestic enterprises (DMEs) in the tourism industry, using firm-level data. Previous studies focus on the hypothesis that ownership-specific advantages are a major determinant of performance differences. This paper explores performance issues using the eclectic paradigm configuration of tourism multinationals (NACE = 55), operating in Greece and a panel dataset for 95 firms and 10 years. A quantile regression technique is used to estimate the proposed model. Results indicate that, overall, MNEs out-perform their domestic competitors and are generally larger in terms of size. The study reveals, though, that when breaking MNEs into majority and minority owned, the latter perform better, as they make substantial use of local partners. These partners contribute with knowledge of the local market, which is an important aspect for the tourism industry. Finally, the authors discuss the conclusions and managerial implications of the findings.
Phillips, P. (2009). Guest Editor’s Introduction: Special Issue on a New Research Agenda for Hospitality Management. Service Industries Journal [Online] 29:1311-1315. Available at: http://dx.doi.org/10.1080/02642060903026296.
Soltani, E., Lai, P., Phillips, P. and Liao, Y. (2009). The Triangular Supply Chain Relationship: Labour Dispatch Agencies, Hospitality Sector, and Flexible Workers: The Taiwan Experience. Service Industries Journal [Online] 29:1317-1339. Available at: http://dx.doi.org/10.1080/02642060903026221.
Much has been written on the nature of labour flexibility in the Western context and the extent to which it benefits employers in terms securing them cost-effective operations and flexible workers by offering them contingent work arrangements. Absent in this debate has been any examination of the nature and extent of labour flexibility in the non-Western context. This article aims to broaden the debate and examines the current application of labour flexibility practices and its resultant implications in the novel context of Taiwan - with a particular focus on the hospitality industry. The choice of hospitality industry is in line with the recent CEPD's1 call for labour dispatch agencies to be considered as a promotional service industry among 12 categories of services. Data derived from focus group studies and individual in-depth interviews at four hotels and their partner labour dispatch agencies elicited the triangular relationship among labour dispatch agencies, client hotels, and agency workers. In contrast to previous similar research of the Western context where labour flexibility was primarily seen to secure lower labour costs, it was found that tight managerial control over the flexible workforce plays a crucial role in adopting contingent work arrangements. Moreover, the results indicate that flexible workers are regarded as a cost rather than being considered as the rhetoric of human capital.
Halliday, S. and Phillips, P. (2008). Marketing/Accounting Synergy: A Discussion of its Potential and Evidence in E-business Planning. Journal of Marketing Management [Online] 24:751-770. Available at: http://dx.doi.org/10.1362/026725708X345506.
Advances in technology create opportunities for new forms of arranging work, such as collapsing the boundaries between marketing and accounting. This makes it possible for management to identify the key attributes and processes required for a more integrated marketing/ accounting process. This paper sheds light on how e-business planning is taking place and identifies the key areas that are, together, acting as barriers to aligning organisation design, structures and people in the digitised world. The study presents empirical evidence of de facto leadership being taken by the IT function, to the detriment of what might otherwise have been developed: a synergistic relationship between the marketing/accounting planning interface and business performance. We set this in the context of converging demands on the marketing and accounting professions and of the literature suggesting that complex marketing/accounting metrics need to be developed to enable effective performance management. Results from our study in e-business planning and our discussion of the potential for increasing marketing/accounting synergy shed some initial light on how both marketing and accounting practices can perpetuate themselves by embracing and interacting with IT infrastructures and data on business performance. If accountants are to remain influential in the digital age, and marketers are to regain their seat at the top table, it is necessary to develop both a metrics dashboard and changes in organisational design. This will facilitate learning and flexibility to demonstrate credible planning processes and enable improved strategy implementation.
Soltani, E., Lai, P. and Phillips, P. (2008). A New Look at Factors Influencing TQM Failure: Work Process Control or Workforce Control?. New Technology, Work & Employment [Online] 23:125-142. Available at: http://dx.doi.org/10.1111/j.1468-005X.2008.00207.x.
By drawing on multi-case data, there is some evidence to suggest that TQM effectiveness can be viewed as a direct function of the controlling mechanisms that senior managers created prior to TQM implementation. More importantly, control tools of TQM were not used by non-managerial employees with which they could reduce variability or achieve uniformity, rather they were regarded as a weapon used by their managers against them.
Soltani, E., Lai, P. and Phillips, P. (2008). An Empirical Investigation of Management Understanding of Process Control: The Case of Quality Driven Organisations. New Technology, Work & Employment [Online] 23:125-142. Available at: https://doi.org/10.1111/j.1468-005X.2008.00207.x.
By drawing on multi-case data, there is some evidence to suggest that total quality management (TQM) effectiveness can be viewed as a direct function of the controlling mechanisms that senior managers created prior to TQM implementation. More importantly, control tools of TQM were not used by non-managerial employees, with which they could reduce variability or achieve uniformity; rather, they were regarded as a weapon used by their managers against them.
Phillips, P. (2007). The balanced scorecard and strategic control: A hotel case study analysis. Service Industries Journal [Online] 27:731-746. Available at: http://dx.doi.org/10.1080/02642060701453213.
Over the past decade, the literature has seen a proliferation in articles relating to the balanced scorecard, which has been motivated by managers' needs to develop a more balanced view of performance measurement. Despite global adoption by organisations in the private and public sector, the question of how the balanced scorecard could be used as a strategic control tool has rarely been directly discussed. Academic research has tended to have a strong predilection for studies assessing the balanced scorecard as a control tool utilising metrics to report various achievements of targets. A longitudinal case study approach is used over a three year period, which seeks to deepen understanding about the theoretical and practical aspects of the balanced scorecard as a strategic control tool. It is anticipated that this would illuminate the way in which the balanced scorecard has intertwined in the fabric of organisational life and how it positions itself in the wider social context in which it was embedded. The findings of the case study reveal that over-reliance on the successful achievement of balanced scorecard metrics without a focus on strategic control could lead to an organisation having to pursue an exit strategy for a profitable product.
Phillips, P. and Louvieris, P. (2005). Performance Measurement Systems in Tourism, Hospitality and Leisure Small Medium-Sized Enterprises: A Balanced Scorecard Perspective. Journal of Travel Research [Online] 44:201-211. Available at: https://doi.org/10.1177/0047287505278992.
In response to the United Kingdom’s government’s desire
to improve the performance of tourism, hospitality,
and leisure small medium-sized enterprises, this article
analyzes the performance measurement processes within 10
best practice organizations. Related to contemporary approaches
to improving business performance in the management
literature, performance measurement approaches are
analyzed using the balanced scorecard framework. An exploratory
case study approach using the balanced scorecard
as the theoretical framework was taken to explore and elicit
critical success factors in performance measurement. Results
revealed that four key concepts drove measurement and
performance evaluation systems across the sample. These
were the exercising of budgetary control with a view to increasing
total revenue, the undertaking of customer relationship
management as a means of improving quality of service
and customer retention, the necessity for strategic management
in managing internal business processes, and collaboration
(both inter and intra) to drive innovation and
learning. The article also proposes a balanced scorecard
template for hotels
Phillips, P. and Pine, R. (2005). Performance Comparisons of Hotels in China. International Journal of Hospitality Management [Online] 24:57-73. Available at: http://dx.doi.org/10.1016/j.ijhm.2004.04.004.
China’s hotel industry has only really existed since 1978. In that time, it has grown in size
and complexity of ownership. Quality has been improved by the introduction of foreign
management techniques and quality standards, for example the star-rating system of hotel
classification. This paper compares performance of hotels using various hotel groupings
according to ownership, size and star rating.
The comparisons indicate that better performance occurs in hotels that have foreign
ownership connections (especially those linked to Hong Kong, Macauand Taiwan partners),
those that are bigger and those which have a higher star rating.
According to the World Tourism Organization, China is forecast to become the world’s
number one tourist destination by 2020. This paper also identifies the major issues facing the
Chinese hotel industry and the government as they face this astounding prediction.
Phillips, P. and Sipahioglu, M. (2004). Performance implications of capital structure: evidence from quoted UK organisations with hotel interests. Service Industries Journal [Online] 24:31-51. Available at: http://dx.doi.org/10.1080/0264206042000276829.
The objective of this article is to foster research on the relationship between capital structure and corporate performance with hotel companies. Using data collected from 43 UK quoted organisations which possess an interest in owning and managing hotels, Modigliani and Miller's (1958) capital structure irrelevancy theorem is tested. Empirical analysis revealed no significant relationship between the level of debt found in the capital structure and financial performance. These results are consistent with Modigliani and Miller's theorem. Results also highlight that low levels of returns on equity are a feature of the sample. This latter point appears to an important issue for hotel investment, as hotel companies are continually looking to raise external finance to fund expansion. The findings of the study suggest that Chief Financial Officers of the sample organisations need to identify novel ways of expanding the business without increasing the levels of debt. The article concludes by providing examples of how some Chief Financial Officers are responding to the challenges of capital structure.
Phillips, P. (2004). E-business planning and accountants: the balance with performance. International Journal of Business Performance Management 6:43-55.
Phillips, P. (2004). Customer Orientated Hotel Aesthetics: A Shareholder Value Perspective. Journal of Retail & Leisure Property [Online] 3:365-373. Available at: http://dx.doi.org/10.1057/palgrave.rlp.5090191.