Does Online Rating Affect Companies’ Financial Performance? Evidence from Hotels in Singapore

Authors

  • Ding Ding School of Business, Singapore University of Social Sciences
  • Chong Guan School of Business, Singapore University of Social Sciences
  • Zheng Fang School of Business, Singapore University of Social Sciences
  • Pui Mun Lee School of Business, Singapore University of Social Sciences

DOI:

https://doi.org/10.33423/jaf.v17i9.896

Keywords:

Accounting, Finance, Online Consumer Ratings

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.

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Published

2017-12-30

How to Cite

Ding, D., Guan, C., Fang, Z., & Lee, P. M. (2017). Does Online Rating Affect Companies’ Financial Performance? Evidence from Hotels in Singapore. Journal of Accounting and Finance, 17(9). https://doi.org/10.33423/jaf.v17i9.896

Issue

Vol. 17 No. 9 (2017)

Section

Articles

License

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