Degree Type

Dissertation

Date of Award

2011

Degree Name

Doctor of Philosophy

Department

Apparel, Events and Hospitality Management

First Advisor

Robert H. Bosselman

Second Advisor

Tianshu Zheng

Abstract

Numerous measures and metrics are used to evaluate lodging unit and company performance, but no single measure has been identified that captures the financial performance of a lodging firm. EVA Momentum emerged in 2009 as the newest economic value added (EVA)-related business performance measure. The objective of this study was to understand the value of EVA Momentum as a performance measure in the U.S. lodging industry by: (a) comparing EVA Momentum in similar and dissimilar industries, (b) determining if EVA Momentum was related to future value, and (c) understanding if EVA Momentum was more highly related to future performance than were traditional financial performance measures.

Compustat and evaDimensions financial data from 2001-2008 for U.S.-based hotel, restaurant, and REIT companies were used in this study. T-test results showed no statistically significant difference between lodging and restaurant EVA Momentum. ANOVA test results found lodging EVA Momentum was higher than for fixed asset-intensive REITs, but the results were not statistically significant. Regression results showed EVA Momentum was not related to future financial performance as measured by market capitalization or total capitalization. Regression results also showed EVA Momentum was more highly related to future performance than were return on assets, return on sales, and earnings per share for the pooled sample, but not for the individual lodging, restaurant, and REIT samples.

This is the first known empirical study of EVA Momentum as a performance measure. The results of the study provided support for using EVA Momentum to compare company performance across different industries, but did not find that EVA Momentum was related to future financial performance. Using a pooled sample, EVA Momentum was shown to be more highly related to future financial performance than were three traditional financial measures.

DOI

https://doi.org/10.31274/etd-180810-2397

Copyright Owner

Richard L. Mahoney

Language

en

Date Available

2012-04-30

File Format

application/pdf

File Size

121 pages

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