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

 
2007 Annual International CHRIE Conference & Exposition 
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deviate from the observed probabilities (see Minitab 14.20 version). For two models, the correctly predicted 
probabilities are around 80 percent.
CONCLUSION 
For twenty-five years, cash has been the dominant method of payment in hospitality acquisitions. Our 
overall results show that 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 does not appear to be a 
significant determinant of the payment type for hospitality firms. It is unclear why acquiring firms with high debt 
ratios tend to use cash as payment for their acquisitions (which is the opposite to the results cited in the general 
financial literature). This seeming anomaly should represent a fertile area for future research.