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

Authors

  • Prageeth Roshan Weerathunga School of Management, Wuhan University of Technology, Wuhan, 430070 P.R. China http://orcid.org/0000-0001-6417-442X
  • Chen Xiaofang School of Management, Wuhan University of Technology, Wuhan, P.R. China, 430070
  • Manoj Samarathunga

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.

Keywords: Firm Performance, Determinants, Corporate Hotels

JEL Classifications: M410, M210, M370, L1

DOI: https://doi.org/10.32479/ijefi.7880

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Author Biographies

Prageeth Roshan Weerathunga, School of Management, Wuhan University of Technology, Wuhan, 430070 P.R. China

Senior LecturerDept. of Accountancy and Finance Faculty of Management StudiesRajarata University of Sri LankaMihintaleSri Lanka

Chen Xiaofang, School of Management, Wuhan University of Technology, Wuhan, P.R. China, 430070

Professor School of Management, Wuhan University of Technology

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Published

2019-05-27

How to Cite

Weerathunga, P. R., Xiaofang, C., & Samarathunga, M. (2019). Firm-specific and Contextual Determinants of Sri Lankan Corporate Hotel Performance. International Journal of Economics and Financial Issues, 9(3), 213–224. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/7880

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