Did COVID-19 tourism sector supports alleviate investor fear?

Shaen Corbet, Yang Hou, Yang Hu and Les Oxley

Annals of Tourism Research, 2022, vol. 95, issue C

Abstract: The COVID-19 pandemic presented a dynamic black-swan event to which governments implemented support programmes to reduce sectoral probability of default. This research analyses investor response to such assistance, designed to mitigate the effects of the pandemic upon international aviation and tourism. Investor confidence in such support schemes is estimated through short-term abnormal returns. Results indicate significant differential behaviour, with fiscal policy found to be a dominant and largely effective mechanism generating median abnormal returns of 2.17 %. Specific assistance programmes relating to COVID-19 loan facilities, and the provision of pandemic relief packages significantly alleviated short-term investor concerns with median abnormal returns estimated between 2.87 % and 3.89 % respectively. Our empirical results offer investors and policymakers an additional layer of information.

Keywords: Aviation; Tourism; COVID-19; Abnormal returns; GARCH; Government assistance (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0160738322000858
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:95:y:2022:i:c:s0160738322000858

DOI: 10.1016/j.annals.2022.103434

Access Statistics for this article

Annals of Tourism Research is currently edited by John Tribe

More articles in Annals of Tourism Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().