%0 Journal Article
%T Determinants of Earnings Persistence and Predictability for Lodging Properties
%A Gordon Potter
%A Linda Canina
%J Cornell Hospitality Quarterly
%@ 1938-9663
%D 2019
%R 10.1177/1938965518791729
%X Accounting earnings are used extensively in the lodging industry for the purposes of incentive contracting, credit assessment, and valuation but we know little about the attributes of lodging properties¡¯ accounting earnings and their determinants. Two important attributes of accounting earnings are persistence and predictability, which have been identified as key components of sustainable earnings. In this study, we examine a sample for lodging properties over a lengthy time-period to investigate the property-specific determinants of the persistence and predictability of lodging properties¡¯ earnings. We find that barriers to entry, measured by the relative amount of marketing expenditures, have a positive impact on these earnings attributes. We also find that revenue diversification has a positive effect on these attributes, presumably through its impact on earnings stability. Finally, we find that resource rigidity, as measured by operating leverage and labor intensity, have a consistent dampening impact on persistence and predictability
%K accounting
%K earnings
%K persistence
%K predictability
%U https://journals.sagepub.com/doi/full/10.1177/1938965518791729