Do corporate governance practices affect the financial performance of international hotel chains in Egypt? The threshold regression model | ||||
| Journal of Association of Arab Universities for Tourism and Hospitality | ||||
| Article 19, Volume 15, Issue 1, 2018, Page 106-115 PDF (274.64 K) | ||||
| Document Type: Original Article | ||||
| DOI: 10.21608/jaauth.2018.47999 | ||||
 View on SCiNiTO | ||||
| Authors | ||||
| Mahmoud Sayed Abou Kamar1; Nabil Alimi2 | ||||
| 1Faculty of Tourism and Hotels, University of Sadat City, Egypt | ||||
| 2Faculty of Economic Sciences and Management, University of Tunis El Manar, Tunis. | ||||
| Abstract | ||||
| This study enriches the literature on hotel governance by adopting an advanced panel threshold regression model to empirically examine the relationship between corporate governance practices and the financial performance of international hotel chains in Egypt. To this end, the current study designed a corporate governance index (CGI) which consists of four attributes (i.e., the composition of the board of directors, board independence, shareholders’ rights, and disclosure of information). The measures of financial performance were the return on assets and book value per share. Similarly, the effects of some control variables such as firm age and size have also been examined. Data was collected through a questionnaire survey dealt with a panel of 45 representatives of the key international hotel chains in Egypt. The findings proved that the relationship between the governance practices and the financial performance of the investigated hotel chains is marked by the presence of a threshold effect. Below this threshold, the CGI hasn't a significant impact on the financial performance. However, above this threshold, it significantly improves the financial performance of the Egyptian hotels. | ||||
| Keywords | ||||
| Corporate Governance; Financial Performance; hotel chains; threshold analysis | ||||
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