Risk management: comparative analysis of systematic risk and effect of the financial crisis on US tourism industry: Panel data research

Kirill Angel, Carlota Menéndez-Plans, Neus Orgaz-Guerrero

Research output: Contribution to journalArticleResearchpeer-review

7 Citations (Scopus)


© 2018, Emerald Publishing Limited. Purpose: This paper aims to study the connection between the systematic equity risk of US tourism industry companies and a set of information from inside these firms and the market. The authors sought to identify which information explains equity risk to estimate patterns of behavior – especially for those companies that cannot have a beta – in terms of the cost of share capital. Design/methodology/approach: To carry out the research, the authors used a panel data technique and combined accounting information from the selected companies with macroeconomic information to develop independent variables. The sample consisted of 79 firms of the arts, entertainment and recreation and accommodation and food services sectors in the USA for 2004-2013. The authors incorporated two dummy variables into the analyses. The first one was used to find out if a difference exists between the two sectors, and the other was used to examine differences before and after 2008, when the current economic and financial crisis began. Findings: The results reveal that equity risk is explained by businesses’ size and growth, along with three indicators of business efficiency, consumer price and Stoxx Europe 50 indices. The 2008 financial crisis did not alter the behavior of the estimated model, and no difference was found between the two sectors in question. Research limitations/implications: The study’s most important limitation is the number of companies and years that make up the sample, although a broader set of data was analyzed in this work compared to previous studies. Practical implications: The research results are quite useful to tourism enterprise management in the US market as they provide information that explains companies’ equity risk. Knowing this information could facilitate more efficient management, and an understanding of which information determines company risk can help to quantify risk objectively without access to betas. Originality/value: The authors studied the US market as an important financial market and the tourist industry, in particular, for its economic significance, as shown by the direct contribution of travel and tourism to the US gross domestic product. Although this type of research in the tourism sector is not new, the present study answers the need identified by Park and Jang (2014) to continue this line of research by using a more interdisciplinary approach that combines hospitality research with finance and/or accounting studies.
Original languageEnglish
Pages (from-to)1920-1938
JournalInternational Journal of Contemporary Hospitality Management
Issue number3
Publication statusPublished - 1 Jan 2018


  • Assets pricing
  • Corporate finance
  • Financial accounting
  • Macroeconomic information
  • Risk
  • Tourism


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