Impact of location on the probability of default in the Spanish lodging industry: A study of MSMEs

The authors analyse the determinants of business failure in micro-, small- and medium-sized Spanish hotel companies during 2008–2011. They consider accounting variables representative of the economic and financial situation and other variables of lodging activity. This approach is important because...

Full description

Saved in:
Bibliographic Details
Published in:Tourism economics : the business and finance of tourism and recreation 2016-06, Vol.22 (3), p.593-607
Main Authors: Vivel-Búa, Milagros, Lado-Sestayo, Rubén, Otero-González, Luis
Format: Article
Language:English
Subjects:
Business failures
Economic crisis
Economic structure
Economics
Employment
Hotels & motels
Liquidity
Seasonal variations
Small & medium sized enterprises-SME
Spain
Studies
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The authors analyse the determinants of business failure in micro-, small- and medium-sized Spanish hotel companies during 2008–2011. They consider accounting variables representative of the economic and financial situation and other variables of lodging activity. This approach is important because several previous studies have highlighted the need to develop empirical models tailored to an industry, especially when it is as significant in the national economy as the hotel industry is in Spain. The article also examines whether the models developed to date remain valid in the new economic environment characterized by the economic crisis. The results obtained confirm the influence on the probability of business failure of profitability, debt, economic structure, economic and financial stability and liquidity. Moreover, significant influence is identified with regard to the number of delegations, the level of employment, seasonality and competitive concentration in the tourist destination where the business is located.
ISSN:1354-8166
2044-0375
DOI:10.5367/te.2015.0461