Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
280
DETERMINANTS OF THE USE OF CASH FINANCING IN HOSPITALITY ACQUISITIONS 
 
Seonghee Oak 
School of Business 
North Carolina Central University 
ABSTRACT 
There is difference in the use of cash financing between hospitality and non-hospitality firms in acquisition.
This study examines what might motivate this high level of cash financing in hospitality acquisitions. Hospitality 
acquirers are more likely to use cash for acquisitions when the hospitality acquirer has low growth opportunities, a 
high debt ratio, and large firm size. Free cash flow is not a significant determinant of cash financing in either 
segment of the hospitality industry.