• Medientyp: E-Artikel
  • Titel: Is timeshare good for firm value and profitability? Evidence from segment reporting
  • Beteiligte: Penela, Daniela Cristina dos Anjos; Morais, Ana Isabel; Gregory, Amy M.
  • Erschienen: Emerald, 2019
  • Erschienen in: International Journal of Contemporary Hospitality Management, 31 (2019) 8, Seite 3231-3248
  • Sprache: Englisch
  • DOI: 10.1108/ijchm-07-2018-0557
  • ISSN: 0959-6119
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  • Anmerkungen:
  • Beschreibung: PurposeThis study aims to take advantage of segment reporting to provide empirical evidence on the impacts of increasing the share of revenue generated from the timeshare segment in companies’ portfolios for firm value and profitability.Design/methodology/approachThis paper examines data from five publicity traded hospitality companies that have a timeshare component and carries out different regression analysis using 69 observations ranging from 1998 to 2016.FindingsThe findings support the idea of an inverted U-shaped relationship between the degree of timeshare business (DOT) and firm value and profitability. However, for positive values of DOT, an increase of DOT consistently has a negative impact on firm value and accounting profitability.Research limitations/implicationsThis study adds to previous findings through the addition of new variables and contemporary accounting practices. Though sufficient for the analyses conducted, the limited number of observations raises generalizability issues. Further research with larger data sets is advised.Practical implicationsThis study implies that timeshare may continue to grow, but not as a segment in the lodging sector; rather as an industry mainly composed of timeshare-dedicated companies. As firms consider diversification or consolidation, this study may inform decisions related to potential firm value.Originality/valueThis study provides evidence to support previous literature related to spin-off activity in the lodging sector. Perhaps more importantly, this study adds value to research on firm value and profitability by extending traditional models and by developing a new “degree of business” variable using segment reporting.