Blessing in Disguise? Environmental Shocks and Performance Enhancement
73 Pages Posted: 26 Jun 2018 Last revised: 2 Dec 2018
Date Written: November 3, 2018
This study focuses on the impact of pollution shocks on the productivity in the service sector. We show that the review scores of hotels in Singapore dropped sharply during the haze periods and reverted immediately to and exceeded eventually their previous level after the haze shock. The analysis on subcategory score reveals that guests’ mood other than service quality of hotels leads to the decline of review score during the haze episode. Further, we ﬁnd hotels with managers closely monitor online reviews and respond to negative reviews show signiﬁcant improvements. Our ﬁndings shed light on the importance of realizing deﬁciencies in management and operation in the presence of negative shocks and contribute to a growing literature on environment, interruption, and management.
Keywords: Valuation of Environmental Eﬀects, Air pollution, Tourism, Information and Learning, Firm Behavior, Social Media, User-generated content, Consumer rev
JEL Classification: Q51, Q53, Z3, D83, D22
Suggested Citation: Suggested Citation