IDEAS home Printed from https://ideas.repec.org/a/ids/ijmpra/v15y2022i1p24-58.html
   My bibliography  Save this article

The impact of corporate governance on financial performance of Indian hotels: cluster analysis

Author

Listed:
  • Najib H.S. Farhan
  • Faozi A. Almaqtari
  • Mosab I. Tabash
  • Eissa A. Al-Homaidi

Abstract

The current research aims to assess the influence of corporate governance practices on the financial performance of the Indian hotel industry. A panel dataset of 39 hotels listed on the Bombay Stock Exchange (BSE) was used, spanning the period of 2013 to 2016. One accounting-based measure and one marketing-based measure were used for measuring firms' profitability in the current study. Results revealed a statistically significant difference in the board of directors' size, audit committee size, audit committee diligence, and foreign ownership among the hotels' groups. Further, it was found that corporate governance practices have a significant influence on small hotels' profitability. However, only foreign ownership significantly affects the profitability of all hotel groups. The current study introduces useful insights on the impact of corporate governance practices on hotel firms' performance in India, which are very beneficial and vital to investors, practitioners, academicians, and policymakers in the tourism sector.

Suggested Citation

  • Najib H.S. Farhan & Faozi A. Almaqtari & Mosab I. Tabash & Eissa A. Al-Homaidi, 2022. "The impact of corporate governance on financial performance of Indian hotels: cluster analysis," International Journal of Management Practice, Inderscience Enterprises Ltd, vol. 15(1), pages 24-58.
    • Handle: RePEc:ids:ijmpra:v:15:y:2022:i:1:p:24-58
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=119922
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pompei Mititean, 2022. "Is The Financial Performance Affected By Board Characteristics During Covid-19? Evidence From The Energy Industry," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 7(special), pages 100-110, June.
    2. Tarun Kumar Soni & Akshita Arora & Thi Le, 2022. "Firm-Specific Determinants of Firm Performance in the Hospitality Sector in India," Sustainability, MDPI, vol. 15(1), pages 1-16, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmpra:v:15:y:2022:i:1:p:24-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=91 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.