Browsing by Author "Kizildag, M."

Now showing 1 - 4 of 4

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Does franchising matter on IPO performance?: An examination of underpricing and post-IPO performance
(Emerald Publishing Limited, 2017) Özdemir, Özgür; Kizildag, M.; Hotel Management; ÖZDEMİR, Özgür
Purpose - This paper has two main purposes. First, this paper aims to examine whether pre-initial public offering (IPO) franchising activity of issuing firms is priced in the financial markets and results in pricing differential between franchising and non-franchising firms at the time of IPO. Second, the paper aims to find out whether firms with pre-IPO franchising achieve better post-IPO stock performance compared to non-franchising firms. Design/methodology/approach - To test research hypotheses, empirical models were developed and tested through ordinary least square regression analysis. Several data sources were used including Thomson One Banker's SDC database, Compustat/CRSP and IPO prospectuses. Findings - The paper provides further insights to the underpricing phenomenon surrounding IPOs and long-run performance of IPO shares subsequent to listing. Particularly, the study reveals that franchising firms underprice their issues to a higher degree compared to non-franchising firms, and franchising positively affects the post-IPO benchmark adjusted cumulative abnormal returns (CARs) over a three-year observation period. Research limitations/implications - Because the study tests the proposed hypotheses using data only from the restaurant industry, the research results may lack generalizability. Therefore, researchers are encouraged to test similar hypotheses using larger sample sizes from other industries. Practical implications - The study's findings have important implications both for IPO issuers in positioning their offering and for IPO investors in comparing IPO stocks and forming long-run portfolios. Originality/value - This paper contributes both to the IPO and franchising literatures by providing primary insights about how investors perceive pre-IPO franchising and incorporate their perception into their pricing at an IPO.
Open Access
Does risk matter in CEO compensation contracting? Evidence from US restaurant industry
(Elsevier, 2013-09) Özdemir, Özgür; Kizildag, M.; Upneja, A.; Hotel Management; ÖZDEMİR, Özgür
The structure of compensation packages of Chief Executive Officers (CEOs) has been a significant research interest for researchers across various disciplines. In this paper, we examine a unique relationship between CEO compensation and risk (systematic risk) in the US restaurant industry. Our research question stems from the assumption that CEOs must be rewarded with a higher incentive-based compensation in high-risk profile restaurant companies in order to motivate them to perform in their full potential for mutual benefits of the CEO and shareowners. Furthermore, we investigate whether firm risk moderates the relationship between firm performance and CEO total compensation controlling for the firm size and CEO ownership. We draw our sample firms from the US restaurant industry. Findings of our study suggest that firm risk induces a higher proportion of incentive-based compensation for restaurant companies’ CEOs, and firm risk does not seem to moderate the relationship between pay and performance in the restaurant industry.
Metadata only
Underlying factors of ups and downs in financial leverage overtime
(Sage, 2017-09-01) Kizildag, M.; Özdemir, Özgür; Hotel Management; ÖZDEMİR, Özgür
We present new stylized facts on the underlying reasons of US hospitality and tourism firms’ fluctuating levels of financial leverage during the period 1990–2015 using comprehensive micro- and macro-level accounting data overtime. To characterize this puzzling phenomenon, we quantified firm-specific and macroeconomic parameters and a diverse set of leverage proxies at various time frames with various structures. We further took account of the recent economic upheaval in our analyses so that we can compare firms’ leverage behavior as “before” and “after” the major economic turmoil in 2007–2009 periods. The primary themes of our arguments were that firm-specific leverage factors significantly influenced short-term leverage, while long-term leverage was mostly determined by macroeconomic indicators. Beyond that, book leverage was more favorable across firms than market leverage. Last, hospitality and tourism firms substantially extended their borrowing capacities, aggressively grew their leverage ratios, and dramatically increased collateral values leading to lower cost of borrowing due to relaxed lending standards in the aftermath of the recent upheaval. Our article complements previous work by examining whether leverage factors demonstrate discrepancies from the prior findings and by proposing rigorous industry-specific outlook and solution for the financial leverage literature.
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What do we know about social media and firms’ financial outcomes so far?
(Emerald Publishing Limited, 2017) Kizildag, M.; Altin, M.; Özdemir, Özgür; Demirer, I.; Hotel Management; ÖZDEMİR, Özgür
Purpose: This paper aims to understand the emergence, the revolution and the relevant knowledge of academic research concentrating on social media (SM) and hospitality and tourism firms’ financial performance. The authors not only identified the gaps and critical issues in research but also re-conceptualized profound directions for the future research in technology and finance in the hospitality and tourism field. Design/methodology/approach: This study adopted an in-depth review analysis to investigate and review previous scholarly papers published in hospitality, tourism and hospitality and tourism journals from January 2011 to the present. The authors thoroughly analyzed and reviewed peer-reviewed/refereed, blind-reviewed, full-length published articles and working papers within SM and hospitality firms’ financial performance. Editor notes, prefaces, research notes, industry articles, internet publications, conference preceding, books and book chapters were excluded. Findings: Having examined the empirical content of 26 peer-reviewed scholarly articles, the authors clearly observed that none of the papers went beyond analyzing the effect of SM on hotels’ revenue per available room, revenues, net profit, average daily rate, occupancy rates, net operating income, etc., and all papers ignored the analysis of many critical financial proxies. Research limitations/implications: This critique and review paper is limited to the relationship between SM and firms’ financial performance within the hospitality and tourism context. Practical implications: This review provides a blueprint to guide future research, facilitate knowledge accumulation and create a new understanding and awareness in practice as well as SM and financial performance research. Social implications: This paper complements and adds to previous work by demonstrating various aspects, evidences, findings and inferences regarding the association between online SM platforms and firms’ financial performance and by proposing rigorous abstract and specific future extensions to both practice and discipline-specific knowledge. Originality/value: There is an absence of the most updated review study of published papers on SM and hospitality and tourism firms’ financial performance. Although how SM contributes to firms’ financial performance is clear to academicians and industry professionals, no solid consensus or theoretical certainty about what the authors know and do not know has been achieved.