JOURNAL OF ACCOUNTING AND FINANCE
Does Online Rating Affect Companies’ Financial Performance? Evidence from Hotels in Singapore
Author(s): Ding Ding, Chong Guan, Zheng Fang, Pui Mun Lee
Citation: Ding Ding, Chong Guan, Zheng Fang, Pui Mun Lee, (2017) "Does Online Rating Affect Companies’ Financial Performance? Evidence from Hotels in Singapore", Journal of Accounting and Finance, Vol. 17, ss. 9, pp. 60-75
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Consumer rating websites provide a source of open and big data to generate insights on customer perceptions of companies’ service quality. In this study, we gathered online consumer ratings on 9 listed hotel groups in Singapore over an 8-year period (2008-2015) to measure consumers’ online feedback on hotel services. We also explore the relationship between a firm’s online rating and its financial performance. Using pair-wise Granger causality tests, we find that online rating is very closely related to the financial performance of the hotels, especially in terms of profitability, and the causality is in both directions.