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Determinants of Indebtedness in Portuguese Hotels

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Advances in Tourism, Technology and Systems

Part of the book series: Smart Innovation, Systems and Technologies ((SIST,volume 345))

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Abstract

The hotel industry is a reference among the economic activities with the highest growth in recent years in Portugal. The sector has been boosted by strong tourism growth and the consequent attraction of new strategic projects. Explaining the capital structure of firms remains relevant in financial research. However, the results are not exclusive, and in the Portuguese, hotel sector is still scarce, justifying further researches. This manuscript aims to analyze the influence of determinants on the capital structure of 821 Portuguese hotel firms, between 2011 and 2019, and to ascertain whether strategies are conducted according to trade-off and pecking order theories. The study uses the static panel data model, where tests recommend the fixed effects model estimated by least squares dummy variables (LSDV) within. The estimates suggest that the dependent variable indebtedness is positively influenced by the determinants size, tangibility, growth opportunities, and risk, but negatively influenced by return. The overall results suggest that both theories, especially pecking order, are important in explaining the financial capital structure decisions of Portuguese hotel firms.

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Notes

  1. 1.

    SABI (Iberian Balance Sheet Analysis System): https://www.bvdinfo.com/en-gb/our-products/data/national/sabi.

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Acknowledgements

This work is financed by Portuguese national funds through FCT—Fundação para a Ciência e Tecnologia, under the project UIDB/05422/2020.

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Authors and Affiliations

  1. CEOS.PP, ISCAP, Polytechnic of Porto, Porto, Portugal

    Luís M. P. Gomes & Cláudia Pereira

Authors
  1. Luís M. P. Gomes
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  2. Cláudia Pereira
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Correspondence to Luís M. P. Gomes .

Editor information

Editors and Affiliations

  1. Porto Accounting and Business School, Polytechnic Institute of Porto, São Mamede de Infesta, Portugal

    João Vidal Carvalho

  2. Inst. of Acct. & Admin.of Porto (ISCAP), Polytechnic Institute of Porto, S. Mamede de Infesta, Portugal

    António Abreu

  3. School of Hospitality and Tourism, Polytechnic Institute of Porto, Vila do Conde, Portugal

    Pedro Liberato

  4. Department of Accounting, School of Management, EAFIT University, Medellín, Colombia

    Alejandro Peña

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Gomes, L.M.P., Pereira, C. (2023). Determinants of Indebtedness in Portuguese Hotels. In: Carvalho, J.V., Abreu, A., Liberato, P., Peña, A. (eds) Advances in Tourism, Technology and Systems. Smart Innovation, Systems and Technologies, vol 345. Springer, Singapore. https://doi.org/10.1007/978-981-99-0337-5_11

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