Presentation Type

Oral Presentation

Department

Business Administration

Major

Finance

Abstract

The purpose of this research is to examine if consumer confidence plays a role in explaining the financial performance of firms in the hospitality industry. Previous research has shown that consumer confidence has predictive power in forecasting future changes in household spending, and personal consumption growth in the US. Our findings are derived from regression analysis using the Fama-French Five Factor Model, which captures all variations of expected market returns. In order to adequately capture significant findings, we separated abnormal returns into pre-recessionary, recessionary, and post-recessionary time periods. From these findings, we will be able to determine with some certainty if consumer confidence has predictive power on returns in the hospitality industry in these three time periods.

Faculty Mentor

Levon Goukasian

Funding Source or Research Program

Undergraduate Research Fellowship

Presentation Session

Session B

Location

Plaza Classroom 189

Start Date

1-4-2016 5:45 PM

End Date

1-4-2016 6:00 PM

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Apr 1st, 5:45 PM Apr 1st, 6:00 PM

Consumer Confidence and the Performance of the Hospitality Industry in Business Cycles

Plaza Classroom 189

The purpose of this research is to examine if consumer confidence plays a role in explaining the financial performance of firms in the hospitality industry. Previous research has shown that consumer confidence has predictive power in forecasting future changes in household spending, and personal consumption growth in the US. Our findings are derived from regression analysis using the Fama-French Five Factor Model, which captures all variations of expected market returns. In order to adequately capture significant findings, we separated abnormal returns into pre-recessionary, recessionary, and post-recessionary time periods. From these findings, we will be able to determine with some certainty if consumer confidence has predictive power on returns in the hospitality industry in these three time periods.