IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v16y2010i1p185-195.html
   My bibliography  Save this article

Post-Merger Stock Performance of Acquiring Hospitality Firms

Author

Listed:
  • Jing Yang

    (School of Hotel and Restaurant Administration, Oklahoma State University, Stillwater, OK 74078, USA)

  • Woo Gon Kim

    (Dedman School of Hospitality, College of Business, Florida State University, 288 Champions Way, UCB 4116, Tallahassee, FL 32306, USA and International Scholar from Kyung Hee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul 130-701, Republic of Korea)

  • Hailin Qu

    (School of Hotel and Restaurant Administration, Oklahoma State University, Stillwater, OK 74078, USA)

Abstract

This study examines the long-term post-merger stock performance of acquiring hospitality firms between 2000 and 2006 in the USA. The Jensen measure is used to investigate the long-term financial performance of acquiring hospitality firms. A sample of 15 hospitality companies with 8 lodging REITs and 7 hotel/casino companies is analysed. The companies' stock performances are compared against indices of related hotel and REITs sectors and against the S&P 500 index. The study generates mixed findings. The results showed significant positive gains for the acquiring firms when compared to the S&P 500 index; yet, the acquiring firms failed to generate significant gains when compared to sector indices. Furthermore, the REITs firms performed less well than the hotel/casino firms when compared against both market and sector indices.

Suggested Citation

  • Jing Yang & Woo Gon Kim & Hailin Qu, 2010. "Post-Merger Stock Performance of Acquiring Hospitality Firms," Tourism Economics, , vol. 16(1), pages 185-195, March.
  • Handle: RePEc:sae:toueco:v:16:y:2010:i:1:p:185-195
    DOI: 10.5367/000000010790872231
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/000000010790872231
    Download Restriction: no

    File URL: https://libkey.io/10.5367/000000010790872231?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Verma, Shubham Kumar & Kumar, Satish, 2024. "Fractal dimension analysis of financial performance of resulting companies after mergers and acquisitions," Chaos, Solitons & Fractals, Elsevier, vol. 181(C).
    2. Seongsu David Kim, 2023. "The valuation effects of hotel mergers," Tourism Economics, , vol. 29(2), pages 348-377, March.
    3. Nicolau, Juan Luis & Sharma, Abhinav, 2022. "A review of research into drivers of firm value through event studies in tourism and hospitality: Launching the Annals of Tourism Research curated collection on drivers of firm value through event stu," Annals of Tourism Research, Elsevier, vol. 95(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:16:y:2010:i:1:p:185-195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.