Do investors react differently? Evidence from hospitality sector during the covid-19 pandemic

Onur Kemal Tosun

Finance Research Letters, 2022, vol. 49, issue C

Abstract: Focusing on publicly traded U.S. eating & dining and lodging firms from 01July2019 to 30October2020, this paper examines investor reaction to restaurant and hotel firms throughout the Covid-19 pandemic. Results show that there is no consensus on buying or selling shares of different hospitality firms in the beginning. Consistent with the behavioral theory, the market reaction is mainly negative to restaurant firms matching with investors’ negative sentiments while investors are indifferent towards lodging firms. In later stages, investors trade less stocks, and the buy pressure in the market leads to a positive reaction to both types of firms.

Keywords: Investors; Covid-19; Hospitality sector; Eating & dining firms; Lodging firms; Behavioral theory (search for similar items in EconPapers)
JEL-codes: C33 G12 G32 L20 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322003245

DOI: 10.1016/j.frl.2022.103099

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