engleski

Performance Analysis of Small Family Hotels

This paper analyzes financial performance measures of small family hotels (SFH). The empirical goal of this paper is to operationalize capital structure and performance measures of SFH which was fulfilled with a given variables used in research models. Performance measures used in this paper are average growth rates for five-year period – from 2010 to 2014, average net profit growth rate and average sales revenue growth rate. Descriptive analysis of performance measures and capital structure measures shows significant deviations regarding minimal and maximal values in the sample consisting of 120 SFH. Two hypotheses set in the paper were confirmed with multiple linear regression and by constructing two empirical models. Empirical results imply that owner`s knowledge on financing set as equity-to-assets ratio significantly positively influences average net profit growth rate which was confirmed in model 1. Furthermore, owner`s knowledge on financing set as debt-to-equity ratio significantly positively influences average sales revenue growth rate which was confirmed in model 2. According to the research presented in this paper, implications for further research are given which suggest international comparative analysis and deeper and more extensive study of non-financial performance measures.

small family hotels ; performance measures ; multiple linear regression ; entrepreneurial knowledge ; capital structure

This work has been supported in part by the University of Rijeka under the project number 13.02.1.2.09. and in part by the Croatian Science Foundation under the project 6558 Business and Personal Insolvency – the Ways to Overcome Excessive Indebtedness