Browsing by Author "Ferreira, Leonor"
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- Analyzing customer profitability in hotels using activity based costingPublication . Faria, Ana Rita; Ferreira, Leonor; TRIGUEIROS, DUARTEThis paper investigates the use of customer profitability analysis (CPA) in four and five star hotels located in Algarve (Portugal). Traditional accounting systems have been criticized for focusing on product, service or department profitability, and not on customer profitability, thus failing to provide effective information to marketing-related decisions. Results are reported by operating departments, whilst marketing activities focus on customer market segments. Recognizing the growing emphasis on customer value creation, and to overcome the mismatch between the provision and use of information in hotels, CPA techniques have been suggested. Notwithstanding their benefits, namely a strategic focus, hotels still apply traditional techniques. A structured questionnaire collected through personal interviews showed that CPA is far from widespread in hotel management; instead, hotels accumulate costs in profit centers and in cost centers. None of the surveyed hotels had adopted activity based costing, despite this technique being viewed as the most appropriate to calculate individual customer profitability.
- Big bath and goodwill impairmentPublication . Gonçalves, Cristina; Ferreira, Leonor; Rebelo, Efigénio; Fernandes, JoaquimPurpose - To analyze the extent to which recognition of impairments in goodwill is associated with periods of negative results before these losses (big bath practices). To determine whether indebtedness and the capital market restrict the recognition of such losses in big bath practices. Design/methodology/approach - Quantitative empirical study based on accounting and market data of companies listed on the Lisbon and Madrid stock exchanges (2007-2015), supported by multivariate regression models estimated using the generalized moments method (system GMM). Findings - Impairment in goodwill is relevant in big bath practices, and there is great discretion in the use of this accrual. It can be concluded that companies adjust to capital market cycles. The positive relationship between the level of indebtedness and the impairment in goodwill suggests that any penalties from creditors do not condition the recognition of the impairments. Originality/value - There is evidence of big bath practices being associated with companies with negative results and of the role of debt and capital markets as explanatory factors of big bath strategies that use impairments in goodwill.