Tourism companies' risk exposures on text disclosure

Jianping Li; Yuyao Feng; Guowen Li; Xiaolei Sun

doi:10.1016/j.annals.2020.102986

Tourism companies' risk exposures on text disclosure

Ann Tour Res. 2020 Sep:84:102986. doi: 10.1016/j.annals.2020.102986. Epub 2020 Jun 29.

Authors

Jianping Li^{1

2}, Yuyao Feng^{1

3}, Guowen Li^{1

3}, Xiaolei Sun^{1

3}

Affiliations

¹ Institutes of Science and Development, Chinese Academy of Sciences, Beijing, China.
² School of Economics and Management, University of Chinese Academy of Sciences, Beijing, China.
³ School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing, China.

Abstract

Tourism is a risk-prone industry. But most studies focus on tourist risk perception while ignoring company risk exposure. As service providers, the companies play an important role in tourism activities, and systematically identifying the risks they face is vital to the development of the tourism industry. This paper attempts to identify tourism companies' risk exposures based on textual risk disclosure of financial statements. Using 51,008 risk headings of 255 public companies, we adopt Sentence-Latent Dirichlet Allocation (Sent-LDA) method to discover 30 risk exposures of the tourism industry. Further, we discuss the universality and industry representativeness of these risk exposures, as well as risk differences between different sub-industries and years. Findings can help stakeholders develop reasonable and timely risk management strategies.

Keywords: Company risk exposure; Form 10-K; Risk identification; Text mining; Tourism risk.