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The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation()

Due to the detrimental effects of the Covid-19 pandemic on the hotel sector, pandemic crisis management research has received lots of academic attention, from studies in sales-marketing to human resource management. However, financial management has been largely overlooked in the agenda of pandemic...

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Autores principales: Thi Mai Nguyen, Lan, Le, Dung, Vu, Kieu Trang, Tran, Trang Khanh
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Published by Elsevier Ltd. 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9683742/
https://www.ncbi.nlm.nih.gov/pubmed/36447774
http://dx.doi.org/10.1016/j.ijhm.2022.103366
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author Thi Mai Nguyen, Lan
Le, Dung
Vu, Kieu Trang
Tran, Trang Khanh
author_facet Thi Mai Nguyen, Lan
Le, Dung
Vu, Kieu Trang
Tran, Trang Khanh
author_sort Thi Mai Nguyen, Lan
collection PubMed
description Due to the detrimental effects of the Covid-19 pandemic on the hotel sector, pandemic crisis management research has received lots of academic attention, from studies in sales-marketing to human resource management. However, financial management has been largely overlooked in the agenda of pandemic crisis management and hotel resilience. Therefore, this paper aims to address the research gap by exploring the role of capital structure management in maintaining financial stability and resilience capacities of hotel firms during this evolving and unpredictable Covid-19 pandemic. Using a database of 1882 firm-quarter observations of 196 hotel firms in 30 countries from Quarter 3 2018 to Quarter 2 2021, it is found that low debt capital structure mitigates the adverse impact of the pandemic on hotel firms’ financial stability during this turbulent time; particularly the negative impacts caused by government restrictions on both domestic and international travel. The benefit of low debt levels is more pronounced for more vulnerable hotels such as small, less diversified, and slow growing hotel firms. Also, hotel firms that have less long-term debt are more financial stable and resilient during pandemic period. Research outcomes suggest that financial management, in particular capital structure policies should be a critical part of hotel resilience building and crisis management strategy for hotel firms.
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spelling pubmed-96837422022-11-25 The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation() Thi Mai Nguyen, Lan Le, Dung Vu, Kieu Trang Tran, Trang Khanh Int J Hosp Manag Article Due to the detrimental effects of the Covid-19 pandemic on the hotel sector, pandemic crisis management research has received lots of academic attention, from studies in sales-marketing to human resource management. However, financial management has been largely overlooked in the agenda of pandemic crisis management and hotel resilience. Therefore, this paper aims to address the research gap by exploring the role of capital structure management in maintaining financial stability and resilience capacities of hotel firms during this evolving and unpredictable Covid-19 pandemic. Using a database of 1882 firm-quarter observations of 196 hotel firms in 30 countries from Quarter 3 2018 to Quarter 2 2021, it is found that low debt capital structure mitigates the adverse impact of the pandemic on hotel firms’ financial stability during this turbulent time; particularly the negative impacts caused by government restrictions on both domestic and international travel. The benefit of low debt levels is more pronounced for more vulnerable hotels such as small, less diversified, and slow growing hotel firms. Also, hotel firms that have less long-term debt are more financial stable and resilient during pandemic period. Research outcomes suggest that financial management, in particular capital structure policies should be a critical part of hotel resilience building and crisis management strategy for hotel firms. Published by Elsevier Ltd. 2023-02 2022-11-23 /pmc/articles/PMC9683742/ /pubmed/36447774 http://dx.doi.org/10.1016/j.ijhm.2022.103366 Text en © 2022 Published by Elsevier Ltd. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Thi Mai Nguyen, Lan
Le, Dung
Vu, Kieu Trang
Tran, Trang Khanh
The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation()
title The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation()
title_full The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation()
title_fullStr The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation()
title_full_unstemmed The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation()
title_short The role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—A global investigation()
title_sort role of capital structure management in maintaining the financial stability of hotel firms during the pandemic—a global investigation()
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9683742/
https://www.ncbi.nlm.nih.gov/pubmed/36447774
http://dx.doi.org/10.1016/j.ijhm.2022.103366
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