The Effects of Institutional Holdings and State Ownership on Hotel Firm Performance in China

Ming Hsiang Chen, Henry Tsai, Wan Qing Lv

Research output: Journal article publicationJournal articleAcademic researchpeer-review

5 Citations (Scopus)


This article examines the effects of institutional holdings and state ownership on hotel firm performance in China by employing panel regression analysis. The results show that institutional holdings as a whole and domestic institutional holdings have different effects on the performance of Chinese hotel firms. There is an inverted U-shaped relationship between institutional holdings/domestic institutional holdings and hotel performance measured by Tobin’s Q, and an upright U-shaped relationship between domestic institutional holdings and return on assets/return on equity. However, the level of foreign institutional holdings was found to have no significant impact on hotel firm performance in China. Finally, state ownership has a negative impact on Tobin’s Q. Implications for the Chinese hotel industry are discussed.

Original languageEnglish
Pages (from-to)20-41
Number of pages22
JournalJournal of China Tourism Research
Issue number1
Publication statusPublished - 2 Jan 2018


  • hotel firm performance
  • Institutional holdings
  • monitoring
  • state ownership

ASJC Scopus subject areas

  • Cultural Studies
  • Language and Linguistics
  • Linguistics and Language
  • Tourism, Leisure and Hospitality Management

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