Setting the Course: CEO Beliefs as the North Star in the Hotel-OTA Relationship
研究CEO政治意识形态如何影响酒店因美国价格平等诉讼被驳回后的市场价值变化，发现自由派CEO加剧负面反应，保守派CEO更关注股东利益。
The upper echelons theory posits that a CEO’s cognitive and perceptual processes, as well as their values and experiences, influence their decision-making and, consequently, their strategic choices. In the complex love-hate relationship between hotels and online travel agencies, the topic of rate parity agreements is controversial and heated, wherein a CEO’s values, beliefs, and convictions potentially playing a critical role in guiding actions. This study tests this hypothesis by investigating how CEO political ideologies affect changes in hotel market value resulting from the dismissal of the U.S. rate parity lawsuit. The results reveal that the reduction in hotel companies’ market value due to the lawsuit’s dismissal is accentuated by CEO liberalism. Conservative CEOs seem to prioritize shareholder interests, aligning with investor expectations for value preservation amid online travel agencies’ consolidation of market power. This study holds theoretical and managerial implications for the upper echelons theory, corporate governance, and market competition studies. • CEO’s political ideology affects changes in hotel market value. • CEO liberalism increases negative reactions from the rate parity lawsuit dismissal. • Conservative CEOs prioritize shareholder interests.