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Financial performance in Hong Kong listed hotels: the effect of value-added creation and cost-leadership seeking

We structure a literature review which we provide with broader definitions of the majorconcepts: value creation, cost efficiency (leadership), competitive strategies, financialperformance and statement analysis. The literature review focuses mainly on Hong Kongcontext and literatures supporting the similar business strategies among similar size ofcompanies from various industries.The study takes forms as a quantitative study with a deductive approach. A set offinancial performance data will be collected and examined, to show how companyperformance is correlated to its strategies and what an outcome is. We aim at providinganother perspective of investment analysis approach to the potential investors, so theycould embrace the whole picture of available information.We develop two groups of hypothesis; the first group is company’s strategy measures thatshow no effect on financial performance, the second group is company’s strategymeasures that show some effect on financial performance.The result indicates while normally staff cost and cost of sale are recognized as costleadership measure under product industry, it implies positive contribution to valuecreation financial performance in service industry, instead of having influence onprofitability. Also, the wealth generated from previous sale revenue margin will havepositive impact on company’s competiveness in the hotel industry.Keywords: value creation cost leadership, competitive strategies, financial performanceand statement analysis

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-38333
Date January 2010
CreatorsZhang, Lin, Chow, Wai Fong
PublisherUmeå universitet, Handelshögskolan vid Umeå universitet, Umeå universitet, Handelshögskolan vid Umeå universitet
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/masterThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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