The Determinants of Hotel Financial Performance: An Intellectual Capital Perspective

Reena Bhattu Babajee, Boopen Seetanah, Robin Nunkoo*

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review


This research analyzes the impact of Intellectual Capital (IC) on the financial performance (FP) of hotels in Mauritius using a sample 43 hotels for the period 2007 to 2017. This study departs from the related literature methodologically as it uses a dynamic panel data framework that takes into account the dynamic nature of the hypothesized link, while simultaneously catering for possible indirect and endogenous effects. The results show that IC enhances corporate FP, with a reported lower effect in the short run as compared to the long run. Asset turnover and size are the other important determinants of FP. Leverage, on the other hand, is observed to impact on FP adversely. Our findings also confirm that FP of the hotels is also a significant determinant of intellectual capital, suggesting the existence of reverse causal effects. Finally, there is also evidence that size positively influences intellectual capital.
TidsskriftJournal of Hospitality Marketing and Management
Udgave nummer8
Sider (fra-til)1008-1026
Antal sider19
StatusUdgivet - nov. 2020


  • Intellectual capital
  • Financial performance
  • PVAR
  • Hotels