Parametric Determinants of Borrowings in Indian Hotel Industry

International Journal of Hospitality and Tourism System, Vol. 3, No. 1, July 2010-June 2011

Posted: 30 Jan 2011 Last revised: 10 Jun 2011

See all articles by Sushil Kumar Bhadu

Sushil Kumar Bhadu

Kurukshetra University - Institute of Management Studies

B. S. Bodla

Guru Jambheshwar University of Science and Technology

Date Written: July 1, 2010

Abstract

This paper provides an empirical examination of the determinants of borrowings in hotel companies listed on Bombay Stock Exchange. A sample of 50 hotel companies listed on BSE was studied and it is revealed that the ‘company size’, ‘return on capital employed’ and ‘non-debt tax shield’ are the most important determinants of total debt ratio in hotel industry in India. While the ‘collateral value of assets’, ‘company size’ and ‘return on capital employed’ are the most important determinants of long term debt ratio in hotel industry in India. The paper has been divided into five sections i.e. backdrop, review of literature, research methodology, results and discussions followed by conclusions.

Keywords: Borrowings, Company Size, Debt equity Ratio and Total Debt Ratio

Suggested Citation

Bhadu, Sushil Kumar and Bodla, B. S., Parametric Determinants of Borrowings in Indian Hotel Industry (July 1, 2010). International Journal of Hospitality and Tourism System, Vol. 3, No. 1, July 2010-June 2011, Available at SSRN: https://ssrn.com/abstract=1749799

Sushil Kumar Bhadu (Contact Author)

Kurukshetra University - Institute of Management Studies ( email )

Kurukshetra, Haryana 136119
India
9466334730 (Phone)

B. S. Bodla

Guru Jambheshwar University of Science and Technology ( email )

hisar, haryana 125001
India

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