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
Included in
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.