AUTHOR=Korol Tomasz , Spyridou Anastasia TITLE=Examining Ownership Equity as a Psychological Factor on Tourism Business Failure Forecasting JOURNAL=Frontiers in Psychology VOLUME=10 YEAR=2020 URL=https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2019.03048 DOI=10.3389/fpsyg.2019.03048 ISSN=1664-1078 ABSTRACT=

This paper examines ownership equity as a predictor of future business failure within the tourism and hospitality sectors. The main goals of this study were to examine which ratios are the most important for a tourism business failure forecasting model and how significant is the “total percentage of equity ownership by company directors” ratio compared with other ratios associated with the probability of bankruptcy. A stepwise weight assessment ratio analysis (SWARA) was applied, and 12 tourism bankruptcy experts evaluated key ratios. Total percentage of equity ownership by company directors is considered a psychological factor, and it was identified as the fourth most important ratio for a business failure forecasting model. Academicians and practitioners can use the findings of this study whenever developing a forecasting model for tourism and hospitality enterprises.