Tourism firm restructuring: Does the attention of individual investor matter?

Abstract

We examine the power of individual investor attention in increasing tourism firms’ restructured performance, the different effects caused by ‘attention heterogeneity’, the moderating effect of media coverage on the relationship between individual investor attention and tourism firms’ restructured performance, and the robustness of the effects. The results indicate that 1) individual investor attention has a significant positive effect on tourism firms’ restructured performance, 2) individual investor attention via mobile devices influences tourism firms’ restructured performance more than attention via computers, 3) the moderating effect of media coverage on this relationship varies with time and media heterogeneity, and 4) the effect of individual investor attention is immediate, while time is needed for the moderating effect of media coverage to appear. The main effect of individual investor attention and the moderating effect of media coverage on tourism firm performance do not depend on the firm size or the proportion of individual shareholders.