Campus Units

Apparel, Events and Hospitality Management

Document Type

Article

Publication Version

Published Version

Publication Date

2-2019

Journal or Book Title

Journal of Hospitality & Tourism Research

Volume

43

Issue

2

First Page

249

Last Page

271

DOI

10.1177/1096348018776461

Abstract

This study investigated the occurrence of merger and acquisition (M&A) waves in restaurant and lodging industries. By comparing actual frequency of M&A deals with simulated randomly generated deal frequency distributions, this study proved the presence of restaurant and lodging M&A waves. Macroeconomic determinants of the waves were then identified using factor analysis to extract underlying latent factors from 16 macroeconomic variables and employing a distributed lag model to investigate the effect of the extracted macroeconomic factors on the waves. Results showed that all factors (overall activity, market value, cost of debt, and inflation) significantly affected deal frequency in the hospitality industries studied. Theoretical and practical implications of the findings are presented.

Comments

This article is published as Kim, J., Zheng, T., and Arendt, S. Identification of merger and acquisitions waves and their macroeconomic determinants in the hospitality industry. Journal of Hospitality & Tourism Research, doi:10.1177/1096348018776461.

Copyright Owner

The Author(s)

Language

en

File Format

application/pdf

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