Does high-speed railway affect the cost behavior of tourism firms? Evidence from China

Wang, F., Ma, L., Gao, B. and Liu, Y. S. ORCID: https://orcid.org/0000-0002-3012-0973 (2023) Does high-speed railway affect the cost behavior of tourism firms? Evidence from China. Tourism Economics. ISSN 2044-0375 doi: 10.1177/13548166221150698

Abstract/Summary

Cost stickiness, which is also termed cost asymmetry, describes the asymmetric relationship between revenue and cost. In this study, we examine whether high-speed railway (HSR) connection affects the cost stickiness of tourism firms. Employing a sample of 324 Chinese tourism firms from 2003 to 2018 and applying a difference-in-difference (DID) method, we find that the cost stickiness of tourism firms increases after HSR connection. Our results also reveal that the relationship between HSR connection and cost stickiness is more pronounced in firms with higher free cash flow (FCF), higher labor costs, and in state-owned enterprises (SOEs). Our research advances an indepth understanding of the cost behavior in tourism firms and sheds light on the policy effect of HSR connection.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/109742
Identification Number/DOI	10.1177/13548166221150698
Refereed	Yes
Divisions	Henley Business School > Business Informatics, Systems and Accounting
Publisher	Sage
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