Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method

Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method

This study investigated the effect of the minimum wage policy on hospitality firm value and financial performance. The event study method (ESM) results revealed the significant impact of the introduction of minimum wage on firm value, implying that investors perceived minimum wage policy had a negat...

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Bibliographic Details
Published in:International Journal of Hospitality and Tourism Administration
Main Author: Che Ahmat N.H.; Kim J.; Arendt S.W.
Format: Article
Language:English
Published: Routledge 2023
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85110868254&doi=10.1080%2f15256480.2021.1938785&partnerID=40&md5=59faf01285975ad92e05cbea041b5fde
id 2-s2.0-85110868254
spelling 2-s2.0-85110868254
Che Ahmat N.H.; Kim J.; Arendt S.W.
Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
2023
International Journal of Hospitality and Tourism Administration
24
1
10.1080/15256480.2021.1938785
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85110868254&doi=10.1080%2f15256480.2021.1938785&partnerID=40&md5=59faf01285975ad92e05cbea041b5fde
This study investigated the effect of the minimum wage policy on hospitality firm value and financial performance. The event study method (ESM) results revealed the significant impact of the introduction of minimum wage on firm value, implying that investors perceived minimum wage policy had a negative effect on profitability in the long run. Furthermore, substantial increases in the minimum wage beyond market expectations can be a threat to businesses. Findings offer evidence that minimum wage policy did affect financial performance; hence, implementing a balanced minimum wage policy to benefit all stakeholders including business owners is imperative for a win–win situation. © 2021 Taylor & Francis Group, LLC.
Routledge
15256480
English
Article
author Che Ahmat N.H.; Kim J.; Arendt S.W.
spellingShingle Che Ahmat N.H.; Kim J.; Arendt S.W.
Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
author_facet Che Ahmat N.H.; Kim J.; Arendt S.W.
author_sort Che Ahmat N.H.; Kim J.; Arendt S.W.
title Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
title_short Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
title_full Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
title_fullStr Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
title_full_unstemmed Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
title_sort Examining the Impact of Minimum Wage Policy on Hospitality Financial Performance Using Event Study Method
publishDate 2023
container_title International Journal of Hospitality and Tourism Administration
container_volume 24
container_issue 1
doi_str_mv 10.1080/15256480.2021.1938785
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85110868254&doi=10.1080%2f15256480.2021.1938785&partnerID=40&md5=59faf01285975ad92e05cbea041b5fde
description This study investigated the effect of the minimum wage policy on hospitality firm value and financial performance. The event study method (ESM) results revealed the significant impact of the introduction of minimum wage on firm value, implying that investors perceived minimum wage policy had a negative effect on profitability in the long run. Furthermore, substantial increases in the minimum wage beyond market expectations can be a threat to businesses. Findings offer evidence that minimum wage policy did affect financial performance; hence, implementing a balanced minimum wage policy to benefit all stakeholders including business owners is imperative for a win–win situation. © 2021 Taylor & Francis Group, LLC.
publisher Routledge
issn 15256480
language English
format Article
accesstype
record_format scopus
collection Scopus
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