TY - JOUR
T1 - Working capital management and firm performance in the hospitality and tourism industry
AU - Chambers, Nurgul
AU - Cifter, Atilla
N1 - © 2022 Elsevier Ltd. All rights reserved. This is the accepted manuscript version of an article which has been published in final form at https://doi.org/10.1016/j.ijhm.2022.103144
PY - 2022/4/1
Y1 - 2022/4/1
N2 - The aim of this study is to provide empirical evidence concerning the effects of working capital on firm performance in the hospitality and tourism industry. We identify an inverted U-shaped relationship between working capital and firm performance. More specifically, the U-shaped relationship exists for accommodation, food and travel firms. In contrast, a positive linear relationship is valid for sport firms while changes in working capital have no effect on performance for gambling firms. To the best of our knowledge, this study is the first empirical research study to extend cross-country analysis in respect of sub-hospitality and tourism industries to a worldwide context. The findings suggest that hospitality and tourism managers should consider the diversity of relationships between working capital and firm performance in sub-hospitality and tourism industries when deciding on an appropriate strategy for working capital management.
AB - The aim of this study is to provide empirical evidence concerning the effects of working capital on firm performance in the hospitality and tourism industry. We identify an inverted U-shaped relationship between working capital and firm performance. More specifically, the U-shaped relationship exists for accommodation, food and travel firms. In contrast, a positive linear relationship is valid for sport firms while changes in working capital have no effect on performance for gambling firms. To the best of our knowledge, this study is the first empirical research study to extend cross-country analysis in respect of sub-hospitality and tourism industries to a worldwide context. The findings suggest that hospitality and tourism managers should consider the diversity of relationships between working capital and firm performance in sub-hospitality and tourism industries when deciding on an appropriate strategy for working capital management.
KW - Hospitality and tourism industry
KW - Panel data analysis
KW - Performance
KW - Working capital management
UR - http://www.scopus.com/inward/record.url?scp=85122629465&partnerID=8YFLogxK
U2 - 10.1016/j.ijhm.2022.103144
DO - 10.1016/j.ijhm.2022.103144
M3 - Article
SN - 0278-4319
VL - 102
JO - International Journal of Hospitality Management
JF - International Journal of Hospitality Management
M1 - 103144
ER -