The effect of European and global uncertainty on stock returns of travel and leisure companies

Oguz Ersan, Sagi Akron and Ender Demir
Additional contact information
Oguz Ersan: Kadir Has University, Turkey
Sagi Akron: University of Haifa, Israel

Tourism Economics, 2019, vol. 25, issue 1, 51-66

Abstract: This article aims to evaluate the impact of economic policy uncertainty (EPU) on the STOXX Europe 600 Travel & Leisure Price Index by utilizing a monthly data set for 20 years through 1997–2016. It is found that both the European and the global EPU have significant negative effects on the stock returns of travel and leisure companies. We demonstrate the significantly superior forecasting power of EPU measures on tourism and leisure stock returns, relative to a rather weak forecasting power of various macroeconomic variables.

Keywords: economic policy uncertainty; European economic policy uncertainty; global economic policy uncertainty; return; STOXX Europe 600 Travel & Lisure price index (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1354816618792398 (text/html)

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:sae:toueco:v:25:y:2019:i:1:p:51-66

DOI: 10.1177/1354816618792398

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().