scholarly journals The impact of online reputation on hotel profitability

2020 ◽  
Vol 32 (1) ◽  
pp. 20-39 ◽  
Author(s):  
Seraina C. Anagnostopoulou ◽  
Dimitrios Buhalis ◽  
Ioanna L. Kountouri ◽  
Eleftherios G. Manousakis ◽  
Andrianos E. Tsekrekos
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Semantic Analysis ◽  
Online Reviews ◽  
Ordinary Least Squares ◽  
Bottom Line ◽  
Content Type ◽  
Online Reputation ◽  
The Impact ◽  
Financial Profitability

Purpose The purpose of this study is to quantify the impact of online customer reputation on financial profitability. Design/methodology/approach Online reputation is captured by extracting the most recurring textual themes associated with customer satisfaction and dissatisfaction, expressed within positive vs negative online guest reviews on Booking.com. Latent semantic analysis is used for textual analysis. Proxies of overall financial performance are manually constructed for the sample hotels, using financial data from the Financial Analysis Made Easy (FAME) database. Ordinary least squares is used to gauge the effect of online customer reputation on financial profitability. Findings Empirical findings indicate that recurring textual themes from positive online reviews (in contrast to negative reviews) exhibit a higher degree of homogeneity and consensus. The themes repeated in positive, but not in negative reviews, are found to significantly associate with hotel financial performance. Results contribute to the discussion about the measurable effect of online reputation on financial performance. Originality/value Contemporary quantitative methods are used to extract online reputation for a sample of UK hotels and associate this reputation with bottom-line financial profitability. The relationship between online reputation, as manifested within hotel guest reviews, and the financial performance of hotels is examined. Financial profitability is the result of revenues, reduced by the costs incurred in order to be able to offer a given level of service. Previous studies have mainly focused on basic measures of performance, i.e. revenue generation, rather than bottom-line profitability. By combining online guest reviews from travel websites (Booking.com) with financial measures of enterprise performance (FAME), this study makes a meaningful contribution to the strategic management of hotel businesses.

scholarly journals Complexity and the triple bottom line: an information-processing perspective

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes
Keyword(s):  
Information Processing ◽  
Financial Performance ◽  
Structural Equation ◽  
Negative Impact ◽  
Triple Bottom Line ◽  
Structural Equations ◽  
Equation Modeling ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

Quantitative impacts of mandatory integrated reporting

2019 ◽  
Vol 17 (4) ◽  
pp. 604-634 ◽  
Author(s):  
Elaine Conway
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Risk Measures ◽  
Ordinary Least Squares ◽  
Mandatory Reporting ◽  
Stock Exchanges ◽  
Integrated Reporting ◽  
Content Type ◽  
Environmental Goals ◽  
The Impact

Purpose This paper aims to examine the impact of the 2011 mandatory introduction of integrated reporting (<IR>) on the financial performance, risk and institutional shareholding of listed companies in South Africa to assess whether there is a benefit to <IR> and which may encourage greater adoption of it globally. It contrasts the results with two other African stock exchanges (Nigeria and Egypt with no mandatory <IR>) and examines whether <IR> quality also has an impact on these and on environmental, social and governance (ESG) disclosure scores. Design/methodology/approach A series of multivariate ordinary least squares regressions was estimated on a range of financial, risk, institutional and ESG data from firms on the three African stock exchanges, between 2006 and 2015. Findings Financial performance and risk in South African firms appear to have decreased since the start of mandatory reporting, but institutional shareholding has increased. The production of higher quality reports is associated with decreased financial performance and risk, higher institutional shareholding and increased ESG scores. Originality/value This study is first to test the quantitative effects of <IR> and <IR> quality on a broad range of financial performance and risk measures and the level of institutional shareholding. It also adds to the literature by assessing how the quality of <IR> can impact the ESG scoring of the business. Hence, this study is of interest to firms looking to adopt <IR> for its benefits and to regulatory bodies considering the mandatory adoption of <IR> in support of achievement of national social and environmental goals.

The impact of corporate social responsibility on firms’ financial performance, evidence from the food and beverage industry

2019 ◽  
Vol 122 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Niccolò Nirino ◽  
Nicola Miglietta ◽  
Antonio Salvi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Ordinary Least Squares ◽  
Social Outcomes ◽  
Content Type ◽  
Positive Effects ◽  
Food And Beverage ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on firms’ financial performance (FP) in the food and beverage (F&B) sector. Design/methodology/approach The authors developed a conceptual model that hypothesizes a positive effect of CSR governance on CSR outcomes (environmental and social) and these on firm’s FP. Gathering data from 190 F&B companies, the authors empirically tested the validity of the model through an ordinary least squares regression analysis. Findings The findings highlight the positive impact of CSR governance on environmental and social outcomes, showing real societal concerns among companies’ stakeholders in the F&B industry. Studies on the effect of CSR outcomes on FP have shown mixed results. On one side, the social outcomes positively impact a firm’s performance; on the other side, environmental outcomes show insignificant or non-positive effects depending on different measurements of FP. Originality/value Despite the mixed set of results between CSR and a firm’s performance in the literature, this research provides a new framework in which the impact of CSR on FP is analysed through the effectiveness of CSR governance on CSR outcomes (social and environmental). Moreover, this study contributes to the CSR literature understanding the impact of both environment and social concerns by companies on firm’s FP in F&B context.

Board gender diversity, board compensation and firm performance. Evidence from Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Least Squares ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Firm Financial Performance ◽  
Board Compensation ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to analyze the relationship between board gender diversity, board compensation and firm financial performance in the developing country, Jordan, whose cultural, economic and institutional context is very different from most previously analyzed countries’ context. Design/methodology/approach Ordinary least squares regression was used to examine the association between board gender diversity, board compensation and firm financial performance in a sample of 510 firm-year observations during the years 2009–2018. Generalized least squares estimation method was used to confirm that the results are robust. Findings The author provides new evidence that board gender diversity does not contribute to firm financial performance. The author also detects that there is a positive relationship between board compensation on firm financial performance. Originality/value This paper examines the under-researched relationship between board gender diversity, board compensation and firm financial performance. In so doing, the author tries to provide new insights into this relationship within the developing context, the case of Jordan that has a different environment from that of advanced markets. To the best of the researcher’s knowledge, this is almost certainly the first research to investigate the impact of board gender diversity and board compensation on firm financial performance in the Jordanian market. This manuscript is expected to be used as a reference by the regulators and policymakers – both in Jordan and other countries with a similar institutional, cultural setting – to provide a deep understanding of the impact of board gender diversity and board compensation on the firm performance.

The impact of environmental performance on capital structure and firm performance: the case of Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Kalash
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Returns ◽  
Environmental Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Content Type ◽  
The Impact ◽  
The Capital Structure

Purpose The purpose of this study is to investigate the effect of environmental performance on the capital structure and financial performance of Turkish listed firms. Design/methodology/approach This study used data of 49 firms listed on Istanbul Stock Exchange during the period between 2014 and 2019, resulting in 205 firm-year observations. The environmental performance data were drawn from the carbon disclosure project Turkey climate change reports. Ordinary least squares and binary logistic regression models were used to examine whether environmental performance impacts the capital structure and financial performance. Findings The findings of this research revealed that environmental performance significantly positively affects the firm leverage. Findings also showed that environmental performance has a significantly positive impact on return on assets, operating profitability and return on equity, but no significant impact on stock returns. Practical implications Given the increased borrowing costs for Turkish firms after the 2018 currency crisis in Turkey, the findings of this study are very important as they enable managers of Turkish firms to make better decisions related to capital structure and to understand the role of environmental performance in reducing the cost of debt and enhancing financial performance. Originality/value To the author’s knowledge, this research is the first to investigate the effect of environmental performance on capital structure in the Turkish context, and is one of few that explained how environmental performance affects the financial performance of Turkish firms.

Corporate social responsibility and financial performance in Saudi Arabia

2018 ◽  
Vol 44 (6) ◽  
pp. 648-664 ◽  
Author(s):  
Husam-Aldin Nizar Al-Malkawi ◽  
Saima Javaid
Keyword(s):  
Saudi Arabia ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Estimation Methods ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact of corporate social responsibility (CSR) on corporate financial performance (CFP) using Zakat as a measure for CSR.Design/methodology/approachThe study examines a sample of 107 non-financial firms listed on the Saudi Arabia stock market over a ten-year period from 2004 to 2013. The authors use the generalized method of moments framework developed by Arellano and Bover (1995) and Blundell and Bond (1998). In addition, for comparison purpose and as a robustness check, the present study uses other panel data techniques including fixed effects model, random effects model (and pooled ordinary least squares.FindingsThe results reveal that there is a strong positive relationship between CSR (Zakat) and CFP. This suggests that Zakat contribute positively to both firm’s profitability and value and can be considered as a win-win strategy to maximize returns and improve performance while considering the society as a whole. The results are robust to alternative econometric estimation methods.Practical implicationsThe companies in Islamic economies can effectively and efficiently implement the basic Shari’a Law of paying Zakat, as a successful measure to implement CSR program, thus benefiting the society by narrowing the gap between the haves and have-nots, that, in turn, leads the company to achieve successfully its short-term as well as long-term goals and enhances the value of the firm in the market. Moreover, corporations are generally encouraged to adopt CSR because of its perceived benefits to both macro- and micro-performances.Originality/valueTo the best of the author’s knowledge, this is the first empirical study attempting to examine CSR-CFP relationship within Saudi context employing Zakat as a proxy for CSR. Additionally, the paper provides support for the stakeholder theory from an Islamic perspective.

scholarly journals The influence of outsourcing activities on the perception of service quality. An empirical study based on online reviews by hotel customers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tomás F. Espino-Rodríguez ◽  
Manuel Rodríguez-Díaz
Keyword(s):  
Empirical Study ◽  
Service Quality ◽  
Online Reviews ◽  
Negative Influence ◽  
Performance Measure ◽  
Content Type ◽  
Online Customer Reviews ◽  
Online Reputation ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the impact of the outsourcing of hotel departments on service quality measured through online customer reviews. Design/methodology/approach Three models were developed, considering three important online tourism reputation websites, to establish the relationship between the outsourcing of hotel activities and service quality. Findings The results show that in the three databases, hotel outsourcing has a negative influence on online reputation. A higher level of outsourcing reduces service quality, the percentage of recommendations and the value perceived by customers who carry out online reviews of these hotels. In addition, different models were established for each type of department. Originality/value To the best of the authors’ knowledge, this paper presents the first empirical study to analyse the relationship between the impact of process outsourcing and customers’ online reviews. It is also the first empirical research to consider the relationship between outsourcing and ratings by hotel end-customers as a performance measure.

Does the board diversity impact bank performance in the MENA countries? A multilevel study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayman Issa ◽  
Hesham Yousef ◽  
Ahmed Bakry ◽  
Jalal Rajeh Hanaysha ◽  
Ahmad Sahyouni
Keyword(s):  
Financial Performance ◽  
Educational Level ◽  
Random Effect ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Bank Performance ◽  
Board Diversity ◽  
Content Type ◽  
Mena Countries ◽  
The Impact

Purpose The purpose of this study is to examine the impact of board diversity (e.g. nationality, gender and educational level) on financial performance for a sample of banks listed in 11 countries in the Middle East and North Africa region. Design/methodology/approach This paper uses the system generalized method of moments estimation approach on the data of banks listed in the MENA countries over the period 2011–2018 to investigate the relationship between board diversity and financial performance. Also, the findings are supported by additional robustness tests, including ordinary least squares, fixed and random effect techniques. Findings The empirical results show that there is a significant relationship between board diversity and financial performance in banks. Specifically, the findings demonstrate that board diversity related to nationality has a significant positive impact on bank performance. The findings also show an insignificant association between gender and educational level diversity and bank performance. The robustness analysis supports the findings of the baseline model. Practical implications The study provides multi-country evidence on the importance of board diversity in the MENA region and it sheds light on possible tracks for future reforms aimed at enhancing the effectiveness of the board’s functions. Originality/value This paper extends the existing literature by providing empirical evidence on the association between board diversity and financial performance of banks in the MENA countries. This paper also provides preliminary evidence on the importance of board diversity to influence financial performance.

scholarly journals The moderating effect of agglomeration on horizontal differentiation and online reviews: the case of Paris hotels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
María D. Illescas-Manzano ◽  
Sergio Martínez-Puertas ◽  
Manuel Sánchez-Pérez
Keyword(s):  
Online Reviews ◽  
Competitive Environment ◽  
Horizontal Differentiation ◽  
Content Type ◽  
Differentiation Strategy ◽  
Price Differentiation ◽  
Online Ratings ◽  
Regression Techniques ◽  
Online Reputation ◽  
The Impact

PurposeHotels are immersed in a very competitive environment and hoteliers have to plan and redesign their strategies to stay in the hospitality industry while faced with a steady rise in competition. Hoteliers can employ horizontal differentiation strategies and pricing decisions to gain a competitive advantage over their competitors. The goal of our work is to analyse the effect of pricing and horizontal differentiation strategy of a hotel on its online reputation and to analyse if the hotel location and agglomeration of competitors moderates their relationship with online reputation.Design/methodology/approachWith a sample of 264 hotels from Paris, an empirical study is developed that aims to analyse, using regression techniques, the impact of price, differentiation, location and competitive environment on online ratings given by consumers in the hospitality context.FindingsThe paper provides empirical evidence of how a good location improves the online reputation of a company and how pricing strategies should take into account the location and number of competitors since a good location allows premium prices to be valued positively by consumers while an inappropriate location can produce the opposite effect. Depending on location, the number of competitors can intensify or reduce the effect of price on online reputation. Finally, online reputation only benefits from horizontal differentiation strategies when the degree of agglomeration is low.Originality/valueThis work provides insights about how hotels can strengthen their online reputation through pricing and differentiation strategies, incorporating elements of their environment such as location and competition in this decision-making process.

The efficacy of routing and flexibility on financial performance within an international manufacturing setting

2018 ◽  
Vol 67 (2) ◽  
pp. 341-365 ◽  
Author(s):  
Kelly Weeks ◽  
Alfred Guiffrida ◽  
Mahdi Safa
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Direct Impact ◽  
Bottom Line ◽  
Content Type ◽  
Body Of Knowledge ◽  
Potential Factors ◽  
The Impact

Purpose The purpose of this paper is to extend the developing body of knowledge on supply chain performance by addressing the impact of resource commitment (RC), product route efficiency (PRE), and manufacturing flexibility (MF) on a firm’s financial performance (FP) has a direct impact on supply chain operations. Design/methodology/approach Survey questionnaires were developed in conjunction with literature guidance. Exploratory and confirmatory factor analysis was used in conjunction with structural equation modeling to give a robust analysis of the problem setting. Findings Discoveries herein indicate that committing resources in itself is insufficient to adequately increase FP over the long term. However, the mediating variables of MF and PRE were found to significantly improve a firm’s bottom line. Originality/value Prior research has been somewhat lacking and inconsistent with regards to the nature of causal and mediating relationships found between RC, PRE, MF, and a firm’s financial performance. Given the increasing global nature of competition, understanding the relationships between potential factors that could positively impact a firm’s FP has a large potential direct impact and benefit on supply chain operations.

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