Article ID Journal Published Year Pages File Type
7419103 International Journal of Hospitality Management 2018 10 Pages PDF
Abstract
This paper analyses the determinants of credit risk in the Spanish hotel sector, employing panel data models covering a sample of 734 micro, small and medium-sized enterprises (MSMEs) over the period 2005-2011. Among other things, this study is relevant because credit risk is an important variable for several stakeholders. However, the existing literature has neglected the role of location as a determinant of credit risk and has focused on hotel characteristics. This paper analyses both types of variable simultaneously. Overall, the results highlight the importance of the hotel's location as a determinant of its credit risk. Specifically, seasonality, the level of market concentration and the distance to the tourist destination centre have a significant impact on the financial stability of the hotel. Other factors related to hotel characteristics that prove significant are diversification, liquidity, indebtedness, operational efficiency and profitability.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
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