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The international hotel industry in Spain: Its hierarchical structure ´ ´ ´ Juan Gabriel Brida a, Laura Parte Esteban b, Wiston Adrian Risso c, Marıa Jesus Such Devesa d, * School of Economics and Management – Free University of Bolzano, Via Sernesi 1, I – 39100 Bolzano, Italy Spanish National University for Distance Education (UNED), Faculty of Economics and Management, Department of Business and Accounting, Paseo Senda del Rey, 11, 28040 Madrid, Spain c University of Siena, Department of Economics, P.zza S. Francesco 7, I-53100 Siena, Italy d University of Alcala – Faculty of Economics and Management, Department of Statistics, Economic Structure and International Economic Organization, ´ ´ Antiguo Colegio de Mınimos, Plaza de la Victoria, 2, 28802 Alcala de Henares, Madrid, Spain b a
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Article history: Received 20 February 2008 Accepted 9 February 2009 Keywords: Minimal Spanning Tree Cluster analysis Financing decisions Indebtedness Hotel industry
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This paper empirically analyzes the indebtedness of the main companies in the Spanish hotel industry. In particular, it introduces a method to analyze the structures and dynamics of the largest companies in this sector. The method combines the Pearson correlation coefﬁcient with the nearest neighbour single linkage clustering algorithm (Mantegna, R. N. (1999). Hierarchical structure in ﬁnancial markets. The European Physical Journal B, 11, 193–197). The Pearson correlation coefﬁcient determines a metric distance between two different multidimensional time series that is then used to construct a Minimal Spanning Tree. From this tree, an ultra metric distance that is used to derive the Hierarchical Tree can be computed. From the analysis of the time series data of companies included in the SABI, or the Iberian Balance Sheet Analysis System 2005, it is possible to derive a hierarchical organization of the Spanish hotel ﬁrms. In particular, different dynamic clusters of companies, which correspond to their common production and indebtedness strategies, can be detected. Ó 2009 Elsevier Ltd. All rights reserved.
1. Introduction The objective of this paper is to advance the study of the structure of the Spanish hotel industry using a ﬁnancial approach. Considering the different theoretical and empirical studies of the determinants of the ﬁnancial structure of this industry (see, for instance, Such & Parte, 2007), this paper will empirically identify clusters among the industry’s internationalized companies. These clusters will be determined using the Minimal Spanning Tree (MST) methodology with company indebtedness, which is one of the most relevant variables concerning ﬁnancial structure. However, the population that this study deals with faces a shortage of ﬁnancial alternatives. From these trees, both geometrical (through the MST) and taxonomic (through the hierarchical tree, or HT) information about the correlation between the elements of the set can be obtained. Note that the MST and then the HT are constructed using the Pearson correlation coefﬁcient as a measure of the distance between the time series. This methodology has yielded useful insights into the global structure, taxonomy1 and hierarchy in the
dynamics of both stock market and exchange market data (see Bonanno et al., 2004; Bonanno, Lillo, & Mantegna, 2001; Kaski, ´ Onnela, Kertesz, Kanto, & Chakraborti, 2003; Mantegna, 1999; Mizuno, Takayasu, & Takayasu, 2006; Ortega & Matesanz, 2005). These methods characterize the dynamics, structure and hierarchy of the indebtedness of the Spanish hotel industry, and, in so doing, they present a new, visual method for conﬁrming the existence of a ‘‘kernel’’ inside the internationalized Spanish hotel industry. In fact, businesses in the Spanish hotel industry have scarcely used...