35. Financial Performance, Indebtedness, and Economic Cycles

This research aims to emphasize the impact of indebtedness on the financial performance of tourism companies. To capture this impact in the different phases of economic cycles, the study focused on the period 2004–2019. The econometric analysis is using panel data models, and it has been done for distinct periods of time. The sample was represented by 42 tourism companies. Based on the results of the full-period analysis, performed on the model of return on assets (ROA) and also on the model of return on equity (ROE), it was shown that indebtedness has a negative effect on financial performance. Statistical analysis also provides information on the impact of other micro- and macroeconomic variables. Thus, it was shown that the size of the company and the inflation rate have a negative impact, while the GDP growth rate and the degree of liquidity have a positive influence, when the performance is assessed by ROA. Breaking down the period analyzed into sub-periods depending on the manifestation of the crisis, we have shown that the variation of ROA—under the impact of the variables included in the analysis—is more significant than the variation of ROE. During the pre-crisis (2004–2008) and crisis (2009–2015) periods, none of the variables analyzed influenced ROE. The results of the study are valuable both scientifically and practically because they provide clues to managers on how to adapt performance and indebtedness strategies to the national macroeconomic context.