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Firm-specific and Contextual Determinants of Sri Lankan Corporate Hotel Performance

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Listed:
  • Prageeth Roshan Weerathunga

    (School of Management, Wuhan University of Technology, Wuhan, 430070, P.R. China)

  • Chen Xiaofang

    (School of Management, Wuhan University of Technology, Wuhan, 430070, P.R. China)

  • Manoj Samarathunga

    (School of Tourism, Sichuan University, Chengdu, P.R. China.)

Abstract

Stimulated by the burgeoning tourism industry and its vital importance to the country's economy, this study examines the firm-specific and contextual determinants of Sri Lankan corporate hotel performance. We use data from a sample of 29 listed hotels for seven years from 2012 to 2018. This study uses a multidimensional financial performance measure (CFPS), in addition to return on assets (ROA) and return on equity (ROE). Consequently, the results from the panel regression revealed that hotels' age and size are negatively and significantly affect financial performance. Furthermore, the results suggest that the profitability of Sri Lankan hotels is driven by managerial efficiency, Location factors, geographical diversification, and connection to a wider business network.

Suggested Citation

  • Prageeth Roshan Weerathunga & Chen Xiaofang & Manoj Samarathunga, 2019. "Firm-specific and Contextual Determinants of Sri Lankan Corporate Hotel Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 213-224.
    • Handle: RePEc:eco:journ1:2019-03-21
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    Cited by:

    1. P. R. Weerathunga & Cheng Xiaofang & W. H. M.S. Samarathunga & P. M. B. Jayathilake, 2020. "The Relative Effect of Growth of Economy, Industry Expansion, and Firm-Specific Factors on Corporate Hotel Performance in Sri Lanka," SAGE Open, , vol. 10(2), pages 21582440209, April.

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    More about this item

    Keywords

    Firm Performance; Determinants; Corporate Hotels;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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