Do airlines always suffer from crashes?

Jerry Ho, Mei Qiu and Xiaojun Tang

Economics Letters, 2013, vol. 118, issue 1, 113-117

Abstract: We examine the impact of aviation disasters on the stock prices of the crash airlines and their rival airlines. Results show that the crash airlines experience deeper negative abnormal returns as the degree of fatality increases. The stock prices of the rival airlines also suffer in large-scale disasters but benefit from the disasters when the fatality is minor.

Keywords: Air crashes; Stock market; Contagion effect; Switch effect; Event study (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:1:p:113-117

DOI: 10.1016/j.econlet.2012.09.031

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