Corporate Governance, Ownership Structure, and Credit Ratings of Hospitality Firms. Issue 1 (2nd January 2016)

• Record Type: Journal Article
• Authors: Altin, Mehmet; Kizildag, Murat; Ozdemir, Ozgur
• Is Part Of: Journal of hospitality financial management. Volume 24:Issue 1(2016)
• Page Start: 5
• Page End: 19
• Publication Date: 2016-01-02
• Subjects: Hospitality industry -- United States -- Finance -- Periodicals; Hospitality industry -- Finance; United States; Periodicals; 338.436479
• DOI: 10.1080/10913211.2016.1166022
• Languages: English
• ISSNs: 1091-3211

Abstract

Abstract : This study examines interrelated connections of corporate governance, ownership structure, and credit ratings. From the agency relationship perspective, the study analyzes this multiple association by accounting for firm-specific and ownership characteristics for the period between 1990 and 2007. In this context, logistic functions are used in regression models to predict the probable outcomes of these multiple relationships. Primary findings of this study revealed that hospitality firms with higher anti-takeover provisions (less shareholder power) enjoy higher credit ratings. Findings also revealed high coefficients of Gompers, Ishii, and Metrick (2003) index (the GIM index), suggesting that hospitality firms have strong governance provisions, reduced agency conflicts, and higher chances of getting better credit ratings.