Abstract
This paper examines ownership equity as a predictor of future business failure within the tourism and hospitality sectors. The main goals of this study were to examine which ratios are the most important for a tourism business failure forecasting model and how significant is the “total percentage of equity ownership by company directors” ratio compared with other ratios associated with the probability of bankruptcy. A stepwise weight assessment ratio analysis (SWARA) was applied, and 12 tourism bankruptcy experts evaluated key ratios. Total percentage of equity ownership by company directors is considered a psychological factor, and it was identified as the fourth most important ratio for a business failure forecasting model. Academicians and practitioners can use the findings of this study whenever developing a forecasting model for tourism and hospitality enterprises.
Citations
-
5
CrossRef
-
0
Web of Science
-
1 1
Scopus
Authors (2)
Cite as
Full text
- Publication version
- Accepted or Published Version
- License
- open in new tab
Keywords
Details
- Category:
- Articles
- Type:
- artykuły w czasopismach
- Published in:
-
Frontiers in Psychology
no. 10,
ISSN: 1664-1078 - Language:
- English
- Publication year:
- 2019
- Bibliographic description:
- Korol T., Spyridou A.: Examining Ownership Equity as a Psychological Factor on Tourism Business Failure Forecasting// Frontiers in Psychology -Vol. 10, (2019), s.3048-
- DOI:
- Digital Object Identifier (open in new tab) 10.3389/fpsyg.2019.03048
- Bibliography: test
-
- Alaka, H. A., Oyedele, L. O., Owolabi, H. A., Kumar, V., Ajayi, S. O., Akinade, O. O., et al. (2018). Systematic review of bankruptcy prediction models: towards a framework for tool selection. Expert Sys. Appl. 94, 164-184. doi: 10.1016/j. eswa.2017.10.040 open in new tab
- Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. J. Finance 23, 589-609. doi: 10.1111/j.1540-6261.1968. tb00843.x Amankwah-Amoah, J. (2016). An integrative process model of organisational failure. J. Bus. Res. 69, 3388-3397. doi: 10.1016/j.jbusres.2016.02.005 open in new tab
- Amankwah-Amoah, J., and Wang, X. (2019). Business failures around the world: emerging trends and new research Agenda. J. Bus. Res. 98, 367-369. doi: 10. 1016/j.jbusres.2019.02.064 open in new tab
- Barreda, A., Kageyama, Y., Singh, D., and Zubieta, S. (2016). Hospitality bankruptcy in United States of America: a multiple discriminant analysis-logit model comparison. J. Qual. Assur. Hosp. Tour. 18, 1-21. doi: 10.1080/1528008X. 2016.1169471 open in new tab
- Beaver, W. (1967). Financial ratios predictors of failure. J. Account. Res. 4, 71-111. open in new tab
- Bucevska, V. (2011). An analysis of financial crisis by an early warning system model: the case of the EU candidate countries. Bus. Econ. Horiz. 4, 13-26. doi: 10.15208/beh.2011.2 open in new tab
- Christofides, C., Eicher, T. S., and Papageorgiou, C. (2016). Did established Early warning Signals predict the 2008 crises? Eur. Econ. Rev. 81, 103-114. doi: 10.1016/j.euroecorev.2015.04.004 open in new tab
- Cox, D. (1958). The regression analysis of binary sequences. J. R. Stat. Society. Series B (Methodol.) 20, 215-242. open in new tab
- Ebi, K. L. (2007). Towards an early warning system for heat events. J. Risk Res. 10, 729-744. doi: 10.1080/13669870701447972 open in new tab
- Farrell, J., and Shapiro, C. (1990). Horizontal mergers: an equilibrium analysis. Am. Econ. Rev. 80, 107-126. open in new tab
- Fotiadis, A., Abdulrahman, K., and Spyridou, A. (2019a). The mediating role of psychological autonomy, competence and relatedness on work life balance and well-being. Front. Psychol. 10:1267. doi: 10.3389/fpsyg.2019.01267 open in new tab
- Fotiadis, A., Nuryyev, G., Achyldurdyyeva, J., and Spyridou, A. (2019b). The impact of EU sponsorship, size, and geographic characteristics on rural tourism development. Sustainability 11, 1-15. doi: 10.3390/su11082375 open in new tab
- Garcia Martinez, M., Zouaghi, F., Garcia Marco, T., and Robinson, C. (2019). What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis. J. Bus. Res. 98, 441-449. doi: 10.1016/j.jbusres.2018.07.032 open in new tab
- Garcia-Gallego, A., Mures-Quintana, M.-J., and Vallejo-Pascual, M. E. (2015). Forecasting statistical methods in business: a comparative study of discriminant and logit analysis in predicting business failure. Glob. Bus. Econ. Rev. 17, 76-92. doi: 10.1504/GBER.2015.066534 open in new tab
- Gemar, G. (2019). Predicting bankruptcy in resort hotels: a survival analysis. Int. J. Contemp. Hosp. Manag. 31, 1546-1566. doi: 10.1108/IJCHM-10-2017- 0640 open in new tab
- Gémar, G., Moniche, L., and Morales, A. J. (2016). Survival analysis of the Spanish hotel industry. Tour. Manag. 54, 428-438. doi: 10.1016/j.tourman.2015.12.012 open in new tab
- Getz, D., and Carlsen, J. (2005). Family business in tourism: state of the art. Ann. Tour. Res. 32, 237-258. doi: 10.1016/j.annals.2004.07.006 open in new tab
- Ghenai, C., Albawab, M., and Bettayeb, M. (2020). Sustainability indicators for renewable energy systems using multi-criteria decision-making model and extended SWARA/ARAS hybrid method. Renew. Energy 146, 580-597. doi: 10.1016/j.renene.2019.06.157 open in new tab
- Hashemkhani Zolfani, S., Yazdani, M., and Zavadskas, E. K. (2018). An extended stepwise weight assessment ratio analysis (SWARA) method for improving criteria prioritization process. Soft Comput. 22, 7399-7405. doi: 10.1007/ s00500-018-3092-2 open in new tab
- Hodari, D., Turner, M. J., and Sturman, M. C. (2017). How hotel owner-operator goal congruence and GM autonomy influence hotel performance. Int. J. Hosp. Manag. 61, 119-128. doi: 10.1016/j.ijhm.2016.11.008 open in new tab
- Inmaculada, J. G. (2017). Trend of financial ratios in the business failure process. Int. Res. J. Adv. Eng. Sci. 2, 66-77. open in new tab
- Ionela, S. A. (2014). Early warning systems -anticipation's factors of banking crises. Procedia Econ. Finance 10, 158-166. doi: 10.1016/s2212-5671(14) 00289-5 open in new tab
- Jang, S., and Park, K. (2011). Hospitality finance research during recent two decades: subject, methodologies, and citations. Int. J. Contemp. Hosp. Manag. 23, 479-497. doi: 10.1108/09596111111129995 open in new tab
- Kaur, I. (2015). Early warning system of currency crisis: insights from global financial crisis 2008. IUP J. Appl. Econ. 14, 69-83.
- Kim, H., and Gu, Z. (2006). Predicting restaurant bankruptcy: a logit model in comparison with a discriminant model. J. Hosp. Tour. Res. 30, 474-493. doi: 10.1177/1096348006290114 open in new tab
- Kim, H., Kim, J., and Gu, Z. (2012). An examination of US hotel firms' risk features and their determinants of systematic risk. Int. J. Tour. Res. 14, 28-39. doi: 10.1002/jtr.828 open in new tab
- Kimmel, R. K., Thornton, J. H., and Bennett, S. E. (2016). Can statistics-based early warning systems detect problem banks before markets? N. Am. J. Econ. Finance 37, 190-216. doi: 10.1016/j.najef.2016.04.004 open in new tab
- Frontiers in Psychology | www.frontiersin.org open in new tab
- Klieštik, T., Kočišová, K., and Mišanková, M. (2015). Logit and probit model used for prediction of financial health of company. Procedia Econ. Finance 23, 850-855. doi: 10.1016/S2212-5671(15)00485-2 open in new tab
- Korol, T. (2012). Warning Systems of Enterprises Against the Risk of Bankruptcy - Artificial Intelligence in Financial Management. Saarbrucken: LAP Lambert Academic Publishing. open in new tab
- Korol, T. (2013). Early warning models against bankruptcy risk for Central European and Latin American enterprises. Econ. Model. 31, 22-30. doi: 10. 1016/j.econmod.2012.11.017 open in new tab
- Lado-Sestayo, R., Vivel-Búa, M., and Otero-González, L. (2016). Survival in the lodging sector: an analysis at the firm and location levels. Int. J. Hosp. Manag. 59, 19-30. doi: 10.1016/j.ijhm.2016.08.005 open in new tab
- Law, R., Leung, K., and Wong, R. (2004). The impact of the internet on travel agencies. Int. J. Contemp. Hosp. Manag. 16, 100-107. doi: 10.1108/ 09596110410519982 open in new tab
- Lee, W. S., Moon, J., Lee, S., and Kerstetter, D. (2015). Determinants of systematic risk in the online travel agency industry. Tour. Econ. 21, 341-355. doi: 10.5367/ te.2013.0348 open in new tab
- Lin, F., Liang, D., Yeh, C.-C., and Huang, J.-C. (2014). Novel feature selection methods to financial distress prediction. Expert Sys. Appl. 41, 2472-2483. doi: 10.1016/j.eswa.2013.09.047 open in new tab
- Meyer, P. A., and Pifer, H. W. (1970). Prediction of bank failures. J. Finance 25, 853-868. doi: 10.2307/2325421 open in new tab
- Mihalovič, M. (2016). Performance comparison of multiple discriminant analysis and logit models in bankruptcy prediction. Econ. Soc. 9, 101-118. doi: 10.14254/ 2071-789X.2016/9-4/6 open in new tab
- Mykhayliv, D., and Zauner, K. G. (2017). The impact of equity ownership groups on investment: evidence from Ukraine. Econ. Model. 64, 20-25. doi: 10.1016/j. econmod.2017.03.005 open in new tab
- Nik, P. A., Jusoh, M., Shaari, A. H., and Sarmdi, T. (2016). Predicting the probability of financial crisis in emerging countries using an early warning system: artificial neural network. J. Econ. Coop. Dev. 37, 25-40.
- Ohlson, J. (1980). Financial ratios and the probabilistic prediction of bankruptcy. J. Account. Res. 18, 109-131. open in new tab
- Park, S.-S., and Hancer, M. (2012). A comparative study of logit and artificial neural networks in predicting bankruptcy in the hospitality industry. Tour. Econ. 18, 311-338. doi: 10.5367/te.2012.0113 open in new tab
- Pereira, M. J., Basto, M., and Ferreira-da-Silva, A. (2017). Comparing logit model with discriminant analysis for predicting bankruptcy in Portuguese hospitality sector. Eur. J. Tour. Res. 16, 276-280.
- Power, S., Di Domenico, M., and Miller, G. (2017). The nature of ethical entrepreneurship in tourism. Ann. Tour. Res. 65, 36-48. doi: 10.1016/j.annals. 2017.05.001 open in new tab
- Ribeiro, M. T., Singh, S., and Guestrin, C. (2016). "Why should I trust you?": explaining the predictions of any classifier. arXiv [Preprint]. arXiv:1602.04938 open in new tab
- Shin, D. H., and Bartolacci, M. (2007). A study of MVNO diffusion and market structure in the EU, US, Hong Kong, and Singapore. Telematics Inform. 24, 86-100. doi: 10.1016/j.tele.2005.11.003 open in new tab
- Shin, D.-H., and Song, H.-R. (2012). The switchover to digital broadcasting in Korea. Technol. Forecast. Soc. Change 79, 1447-1461. doi: 10.1016/j.techfore. 2012.04.017 open in new tab
- Shkurti, R., and Duraj, B. (2010). Using multiple discriminant analysis in the bankruptcy prediction in Albania -a study with the state-owned enterprises. J. Acad. Res. Econ. 2, 36-64.
- Smith, L., Rees, P., and Murray, N. (2016). Turning entrepreneurs into intrapreneurs: thomas cook, a case-study. Tour. Manag. 56, 191-204. doi: 10. 1016/j.tourman.2016.04.005 open in new tab
- Tang, L. (2014). The application of social psychology theories and concepts in hospitality and tourism studies: a review and research agenda. Int. J. Hosp. Manag. 36, 188-196. doi: 10.1016/j.ijhm.2013.09.003 open in new tab
- Thai Siew, B., and Abdollahi, M. (2013). Corporate failute prediction: malaysia's emerging market. Int. J. Finance 25, 7985-8011.
- Ucbasaran, D., Shepherd, D. A., Lockett, A., and Lyon, S. J. (2012). Life after business failure: the process and consequences of business failure for entrepreneurs. J. Manag. 39, 163-202. doi: 10.1177/0149206312457823 open in new tab
- Valenti, A., and Schneider, M. (2012). Exploring the effects of managerial ownership on the decision to go private: a behavioral agency model approach. Adm. Issues J. Connect. Edu. Pract. Res. 2, 40-55. open in new tab
- Verikas, A., Kalsyte, Z., Bacauskiene, M., and Gelzinis, A. (2010). Hybrid and ensemble-based soft computing techniques in bankruptcy prediction: a survey. Soft Comput. 14, 995-1010. doi: 10.1007/s00500-009-0490-5 open in new tab
- Wang, S., Hung, K., and Huang, W.-J. (2019). Motivations for entrepreneurship in the tourism and hospitality sector: a social cognitive theory perspective. Int. J. Hosp. Manag. 78, 78-88. doi: 10.1016/j.ijhm.2018.11.018 open in new tab
- Zhang, H., Amankwah-Amoah, J., and Beaverstock, J. (2019). Toward a construct of dynamic capabilities malfunction: insights from failed Chinese entrepreneurs. J. Bus. Res. 98, 415-429. doi: 10.1016/j.jbusres.2018.06.020 open in new tab
- Zigraiova, D., and Jakubik, P. (2015). Systemic event prediction by an aggregate early warning system: an application to the Czech republic. Econ. Sys. 39, 553-576. doi: 10.1016/j.ecosys.2015.04.004 open in new tab
- Sources of funding:
- Verified by:
- Gdańsk University of Technology
seen 115 times
Recommended for you
Organizational Resilience in Hospitality and Tourism
- M. Rozkwitalska-Welenc,
- J. Borzyszkowski,,
- B. Basińska
- + 2 authors