Abstract:
The purpose of this study is to investigate the top 5 international hotel chain’s
share price impact factors, with emphasis on hotel specific and financial aspects
during 2013-2016. This study is crucial since the tourism industry growth
significantly in the last 4 years, and hotel industry is important for the tourism
business. Therefore, this study would like to analyze the firm’s value that be
represented by share price of the top 5 international hotel chains. This study
employs a main research question: ‘What are the significant factors that influence
the top 5 international hotel chain’s share price?’ Moreover, this study investigates
the impact of 3 independent variables from hotel specific aspects, which are total
room, revenue per available room (RevPAR), and occupancy rate; and another 4
independent variables to represent financial aspects, such as current ratio,
operating margin, earning per-share（EPS), return on asset (ROA) toward share
price. The research methodology is panel data general least square (GLS) by
STATA M-64. The findings of this research are revenue per available room
(RevPAR), current ratio, operating margin, earnings per-share (EPS) are
significantly influence the share price. Moreover, this study shows that EPS has a
positive and significant impact toward the share price. It means in the top 5
international hotel chain industry, revenue per available room (RevPAR), current
ratio, and operating margin has negative impact toward its share price. This
finding supports the principles of efficiency market hypothesis that published
financial performance has weak impact toward share price, even though this study
recommends further study to find the reason why revenue per available room
(RevPAR), current ratio, and operating margin in the top 5 international hotel
chains’ industry have negative impact toward the share price.
