Measuring managerial ability in the hotel industry

Tsionas, Mike and Assaf, A. George and Kock, Florian (2022) Measuring managerial ability in the hotel industry. International Journal of Hospitality Management, 103. ISSN 0278-4319

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Abstract

This note develops and implements a novel model to estimate managerial ability for different hotels over time. Our model is a dynamic Multiple Indicator Multiple Causes (MIMIC) model. We use Bayesian techniques organized around Markov Chain Monte Carlo and we perform detailed posterior sensitivity with respect to the prior. We propose estimating managerial ability using accounting data only, hence facilitating more studies and hypothesis testing in this area.