Examining the impact of Halal tourism industry sustainability on stock returns

Mohammad Ashraful Chowdhury, Mohammad Abdullah and Zunaidah Sulong

Tourism Economics, 2025, vol. 31, issue 5, 843-860

Abstract: This study investigates the relationship between sustainable industry performance and stock returns of the Halal tourism sector. We use a comprehensive dataset comprising 192 Halal tourism firms from 38 countries over the period of 2010–2020. Our baseline analysis reveals a significant positive impact of sustainable industry performance on Halal tourism stock returns. To control endogeneity issues, we employ advanced econometric techniques, including dynamic Generalized Method of Moments and confirms the robustness of our initial results. Furthermore, we document the adverse effects of the COVID-19 pandemic on Halal tourism stocks, underscoring the vulnerability of the industry to external shocks. Additionally, our subsample analysis highlights that firms with lower levels of sustainability experience negative repercussions on their stock returns. The findings offer valuable insights for investors, policymakers, and industry stakeholders, emphasizing the importance of sustainable strategies in enhancing both financial outcomes and resilience in the ever-evolving landscape of Halal tourism.

Keywords: sustainable industry performance; halal tourism; arbitrage pricing theory; stock returns (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:31:y:2025:i:5:p:843-860

DOI: 10.1177/13548166241265820

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