|Title||The value effects of changes in leverage: Evidence from the Travel and Leisure sector|
|Authors||Van Dellen, S., Sivaprasad, S. and Bas, T.|
It is well documented that the Travel and Leisure sector is capital intensive when compared to other sectors due to the high level of capital required for fixed assets. Given this, this paper examines the relation between changes in leverage and stock returns of firms in this sector, in addition to examining whether changes in leverage have any significant effect on a sector basis. Using a final sample of 173 firms over the period between 1993 and 2012, we find that leverage only acts as a significant determinant of returns in the case of highly levered firms, as would be the case in the Travel and Leisure sector.
|Keywords||Travel and Leisure sector|
|Changes in leverage|
|Conference||22nd Annual Conference of the Multinational Finance Society|
|Accepted author manuscript|