Inclusion of Condominium Units in Luxury Hotels as a Diversification Strategy: Property Performance Perspective

2021 ◽  
pp. 193896552110503
Author(s):  
Agnes DeFranco ◽  
Yoon Koh ◽  
Piyush Prem ◽  
Benjamin Love
Keyword(s):  
Geographic Diversification ◽  
Firm Level ◽  
Mixed Effect ◽  
Luxury Hotels ◽  
Level Data ◽  
Daily Rate ◽  
Food And Beverage ◽  
Scant Attention ◽  
Data Points ◽  
The Difference

There is a new wave of mixed development where luxury hotels come with condominium units, though this type of diversification has gained scant attention. Prior hospitality literature on diversification strategies has mostly taken the firm-level approach and documented its impact on performance from various angles such as brand diversification, segment diversification, and geographic diversification, therefore leaving a void. In this work, we use the multilevel mixed effect model to examine 15,340 property-level data points from 2010 to 2019 for U.S. luxury hotels with and without condominium units. Our objective is to compare, at a property level, the performances of luxury hotels with condominium units with the performances of those not having condominium units and to determine whether the difference varies by hotel location. Our findings suggest that the Average Daily Rate (ADR), Revenue per Available Room (RevPAR), and Total Revenue per Available Rooms (TRevPAR) of luxury hotels with condominium units were significantly higher than those of hotels without condominium units. Significant moderating effect of location was found for Occupancy, ADR, Food and Beverage Revenue per Available Rooms (F&B RevPAR), and TRevPAR while no such effect was found for RevPAR and GOPPAR.

Growth Effects of VAT Evasion and Enforcement

2018 ◽  
Vol 47 (3) ◽  
pp. 530-557 ◽  
Author(s):  
Chandler McClellan
Keyword(s):  
Economic Growth ◽  
Public Goods ◽  
Tax Evasion ◽  
Tax Revenue ◽  
Firm Level ◽  
Mixed Effect ◽  
Tax Enforcement ◽  
Revenue Collection ◽  
Level Data ◽  
Firm Level Data

Lower tax revenues have a theoretically mixed effect on growth as they create more disposable income for investment but simultaneously reduce funds for public goods. This study combines firm-level data on tax evasion and enforcement from seventy-nine countries with macroeconomic data to examine the effects of tax enforcement measures and tax revenue shortfall on economic growth. This study finds that while increased enforcement measures reduce growth, high tax revenue collection serves to increase growth. These results suggest that reforms focusing on increasing revenue without resorting to greater enforcement measures are desirable.

Efficiency and Price Effects of Mergers in European Union's Trade and Manufacturing Sectors

2019 ◽  
Vol 10 (4) ◽  
pp. 993
Author(s):  
Ozana NADOVEZA JELIĆ ◽  
Marko DRUŽIĆ
Keyword(s):  
Manufacturing Sector ◽  
National Level ◽  
Economic Activities ◽  
Firm Level ◽  
Welfare Losses ◽  
Level Data ◽  
Price Effects ◽  
Manufacturing Sectors ◽  
The Difference ◽  
Efficiency Effects

There are two basic tendencies operating simultaneously in every merger case: i) welfare gains due to efficiency related price reductions and ii) welfare losses associated with rising market power and resulting higher prices for consumers. The question of which will prevail is theoretically ambiguous, and consequently has to be settled empirically. The main objectives of this paper are to explore the effects of mergers on efficiency of consolidated firms, and to study their effects on prices in the trade and manufacturing sectors. To explore the effects of mergers on efficiency and prices we employ both a micro and macro approach by relying on firm-level data in the analysis of efficiency effects and on national-level data in the evaluation of price effects of mergers by using the Difference-in-Difference (DiD) approach on a sample of merger cases regulated by the European Commission (EC) during the 2010-2013 period. The DiD based results show that consolidated firms performed better than their competitors in the second year following the merger. Estimated efficiency gains seem to be led by efficiency growth of merged firms in the manufacturing sector. At the same time, we find evidence that compared to their unaffected counterparts, countries and economic activities in which the consolidation took place experienced a higher associated inflation in the year of the merger. Therefore, our results suggest that price effects unfold in the year when the merger is realized while efficiency effects occur with a delay of two years.  

scholarly journals Does Higher Education Promote Firm Innovation in China?

2020 ◽  
Vol 12 (18) ◽  
pp. 7326
Author(s):  
Xia Pan ◽  
Yuning Gao ◽  
Dong Guo ◽  
Wenyin Cheng
Keyword(s):  
Higher Education ◽  
Census Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Higher Education Institutions ◽  
High Tech ◽  
Firm Level ◽  
Firm Innovation ◽  
Mixed Effect ◽  
Level Data

Endogenous growth theories have underpinned the pivotal role of education in innovation. However, our empirical study uncovers a mixed effect of higher education on firm innovation in China. Using Chinese Patent Census Data, a unique dataset, this paper is able to quantify innovation in China by incorporating a quality dimension for the first time. By merging the patent data with the Chinese Industrial Enterprise Database and province-level data on education, we find that the number of higher education institutions has a negative impact on firm-level innovation. However, the quantity of elite higher education institutions at the provincial level exerts a positive impact on firm innovation. In addition, heterogeneity analyses show that the effect of elite higher education on firm innovation is significantly positive for privately owned enterprises, but insignificant for state- and foreign-owned enterprises. Furthermore, the positive effect of elite higher education on innovation in high-tech industries is larger than in other industries.

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

Ageing and Employability. Evidence from Belgian Firm-Level Data

2012 ◽  
Author(s):  
Mariann Rigo ◽  
Vincent Vandenberghe ◽  
Fábio Waltenberg
Keyword(s):  
Firm Level ◽  
Level Data ◽  
Firm Level Data

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

scholarly journals Information related service trade within firms: evidence from firm-level data in Germany

2021 ◽  
Author(s):  
Kurt A. Hafner ◽  
Jörn Kleinert
Keyword(s):  
Multinational Firms ◽  
Economies Of Scope ◽  
It Services ◽  
Firm Level ◽  
It Service ◽  
Level Data ◽  
Related Service ◽  
Foreign Affiliates ◽  
Knowledge Intensive ◽  
Parent Companies

AbstractMulti-unit firms have productivity advantages over competitors because of their use of a non-rival asset—firm-specific knowledge—in several units. Using knowledge-intensive services leads to economies of scope in production by multi-unit firms. Such headquarter are usually supplied by parent companies and serve to link different firm units. Headquarter services are difficult to quantify in statistics or surveys, except when they cross-borders and the exchange of services between MNEs and their offshore subsidiaries becomes apparent. This study therefore focuses on IT service imports to explain productivity differences among foreign affiliates of multinational firms in Germany. The authors base the analysis on the population of foreign multinational firms active in Germany and analyze what effect the import of IT services has on their productivity. They find that IT headquarter service flows have significant impacts on foreign affiliates’ productivity in general and US affiliates in particular. As the average IT-service flows (per firm and partner) from parent countries are significantly higher for US affiliates than non-US affiliates, they conclude that the import of IT services from the parent-company is a source of the productivity advantages of US affiliates in Germany.

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