Structured Abstract

Purpose: This study empirically investigates agency and stewardship theories in the U.S. lodging market by examining the influence of fiscal and non-fiscal leadership structures on the debt financing decisions of lodging firms. Design/methodology/approach: Secondary financial data were collected for U.S.-based lodging firms. Subsequently, bivariate correlation, pooled OLS (Ordinary Least Square), and endogeneity analyses were performed on the data. Findings: The findings support the significant influence of some corporate governance attributes on the capital structure of U.S. lodging firms and show the limited applicability of agency and stewardship theories. Practical implications: Theoretical and managerial implications are suggested in terms of balancing leadership structure attributes from the agency and stewardship theories, the capital structure of lodging firms, and future research. Originality/value: Despite its importance considering the intensive capital and relatively high liabilities needed for success in the lodging industry, the influence of leadership structure on capital structure has not been examined either empirically or theoretically. Leadership structure attributes, both fiscal and non-fiscal, are included in the study to gain a richer understanding of their influence. The outcomes of the analysis suggest managerial implications for leadership structure as well as theoretical generalizability for agency and stewardship theories within the lodging industry.