Award Date

1-1-1996

Degree Type

Thesis

Degree Name

Master of Science (MS)

Department

Hotel Administration

First Committee Member

Robert Bowen

Number of Pages

79

Abstract

The purpose of this study was to investigate the relationship between the key financial variables of casino firms and their common stocks, and to examine the risk features and the diversifiability of casino stocks; The financial and stock return data for the period 1992-1994 in this study were obtained from the CD-ROM database of the University of Nevada, Las Vegas and the Center for Research in Security Prices (CRSP File) of the Graduate School of Business, University of Chicago. The relationship between four financial variables (current ratio, leverage ratio, asset turnover ratio, and profit margin ratio) and the casino beta was tested by using a cross-sectional multiple regression analysis; The study found that asset turnover ratio was negatively correlated with beta (i.e., a firm with high efficiency has a low beta), but current ratio, leverage ratio, and profit margin ratio were not significantly correlated with casino betas. The study also found that 92% of the total risk of casino firms between 1992 and 1994 was due to the unsystematic risk which is determined by firm-specific factors. Therefore, the volatility of casino stocks was primarily explained by each casino's unique factors; The findings of the study suggest that the systematic risk of casino firms is related to the efficient management of casino assets. High efficiency leads to lower systematic risk and hence the value of casino firms may be enhanced.

Keywords

Analysis; Beta; Casino; Features; Financial; Industry; Relationship; Risk; Variables

Controlled Subject

Commerce; Recreation

File Format

pdf

File Size

1648.64 KB

Degree Grantor

University of Nevada, Las Vegas

Language

English

Permissions

If you are the rightful copyright holder of this dissertation or thesis and wish to have the full text removed from Digital Scholarship@UNLV, please submit a request to digitalscholarship@unlv.edu and include clear identification of the work, preferably with URL.

Rights

IN COPYRIGHT. For more information about this rights statement, please visit http://rightsstatements.org/vocab/InC/1.0/

Download


Share

COinS