Will the Aviation Industry Have a Bright Future after the COVID-19 Outbreak? Evidence from Chinese Airport Shipping Sector

Jingxuan Liu, Ping Qiao, Jian Ding, Luke Hankinson, Elodie H. Harriman, Edward M. Schiller, Ieva Ramanauskaite and Haowei Zhang
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Jingxuan Liu: Business School, University of Sydney, Sydney, NSW 2006, Australia
Ping Qiao: School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
Jian Ding: College of Economics and Management, Tianjin University of Science and Technology, Tianjin 300547, China
Luke Hankinson: Business School, University of Sydney, Sydney, NSW 2006, Australia
Elodie H. Harriman: Business School, University of Sydney, Sydney, NSW 2006, Australia
Edward M. Schiller: Business School, University of Sydney, Sydney, NSW 2006, Australia
Ieva Ramanauskaite: Business School, University of Sydney, Sydney, NSW 2006, Australia
Haowei Zhang: School of Chemical and Biomolecular Engineering, University of Sydney, Sydney, NSW 2006, Australia

JRFM, 2020, vol. 13, issue 11, 1-14

Abstract: Due to the lockdown regulations worldwide during the COVID-19 pandemic, the global aviation industry has been severely hit. This study focuses on the volatility estimation of stock indexes in the Chinese Airport Shipping Set (ASS) at industry-enterprise levels and identifies possible business behavior that may cause fluctuating differences. Depending on the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model, text mining method and Word Cloud Views, results show that (1) the holistic volatility of Airport Shipping Set Index (ASSI) increases relative to the pre-COVID period; (2) volatility of airport stocks has crucial differences, while the volatility of shipping stocks is similar; (3) there are different responses to the pandemic between Shenzhen Airport and Shanghai Airport shown in their semiannual financial reports. Compared to the latter, the former had a more positive attitude and took various measures to mitigate risks, providing evidence of the volatility differences between firms.

Keywords: COVID-19; financial risk management; stock price returns; stock volatility; airline industry; at industry-enterprise levels (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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