The Journal of

HOSPITALITY FINANCIAL MANAGEMENT

Volume 5                                                 1997                                                Number 1 
Table of Contents

EDITOR’S NOTE

Corporate Restructuring, Takeovers, and Poison Pills – Where Does the Road End?

Atul Sheel REFEREED ARTICLES

A review of Current Financial Issues Facing the International Hotel Industry

Jeong-Gil Choi This paper identifies key hotel financial issues reflected by articles published in academic and trade journals during the period 1983-1996. At the onset, four of the most intensively and frequently discussed issues are identified: capital shortage & financing methods, capital sources, tax and deduction, and valuation. Thereafter, each issue is examined in detail in the context of international hotel financial management.
 

Financing Theories and Financing Practices: a Case Study of Two Casino Companies

Zheng Gu and Jolan Ku This paper analyzes the financing behaviors of two major casino companies, Mirage Resorts Inc. and Circus Circus Enterprises Inc. in their recent expansion projects. It compares the financing practices of the two companies with three existing financing theories, namely the traditional trade-off theory, the pure pecking order theory, and the modified pecking order theory. Analyses reveal that the modified pecking order theory best explains the financing behavior of the two hotel firms.
 

A Survey of Capital Budgeting Methods used by the Hotel/Gaming Industry

Stanley M. Atkinson and Stephen M. LeBruto This study examines the capital budgeting and cost of capital procedures commonly used in the gaming segment of the hospitality industry, using survey research. Findings are compared with previous studies of similar nature. As such the practice of capital budgeting/cost of capital techniques in the gaming sector is better understood.
 

Internal Controls Practices in Casino Gaming

Agnes L. DeFranco and James F. Wortman Gaming has become one of the fastest growing segments of the hospitality industry. In addition, an enormous amount of cash changes hand in the daily operation of a casino. Therefore, internal control practices, especially those concerning cash revenue flows, are important. This paper addresses the regulations set by gaming authorities and the minimum standards for internal control in casino gaming. It also examines the accounting functions of a casino, the principal revenue flow, the importance of cashiering, and the control practices used in the opening and closing procedures for table games. As such, the internal control practices in casino gaming are better understood.
 

INVITED ARTICLES

AHFME Member 1995 Total Annual Earnings Survey

Raymond S. Schmidgall This study was conducted to determine the 1995 annual earnings of hospitality financial management educators. Nearly fifty percent of AHFME’s members responded. Annual base salaries ranged from $28,000 to $105,000. The lowest paid member is an instructor while the highest paid member is a full professor. Most respondents supplement their base salaries by teaching during summer school and conducting consulting. The total annual earnings of members ranged from $30,000 to $158,250. Hospitality financial management educators appear to be more highly compensated than hospitality industry financial executives.
 

VIEWPOINT

Reflections on Intellectual Craftsmanship in Hospitality Research

Francis A. Kwansa This paper discusses how a hospitality epistemology can be created. It defines knowledge and the process of its creation. The paper also suggests a framework for contemplating research in an applied area such as hospitality, and a process for engaging in systematic reflection as part of good intellectual craftsmanship.
 

ABSTRACTS OF PRESENTATIONS AT THE NINTH ANNUAL AHFME RESEARCH SYMPOSIUM
 

Succession and Control: The Case of Singapore Family Owned Businesses

Muhammad Asad Sadi Information Technology and Financial Performance in the Restaurant Firms Yang H. Huo The Use of Crystal Ball Within a Spreadsheet to Analyze Capital Budgeting Decisions in the Hospitality Industry Charles Kelliher and Stanley Atkinson The Accounting and Marketing Interface in Hotels Nina Downie Survey of Lodging Accounting/Finance Executives Regarding Capital Expenditure Decisions A. J. Singh and Raymond Schmidgall Rooms Pricing in Practice and the Utility of Two Cost Models Zheng Gu and Jeffrey Caneen
 
 
 
 
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