EconPapers    
Economics at your fingertips  
 

Does VIX scare stocks of tourism companies?

Saffet Akdağ (), İlker Kiliç () and Hakan Yildirim ()
Additional contact information
Saffet Akdağ: Tarsus University
İlker Kiliç: Bozok University
Hakan Yildirim: İstanbul Gelişim University

Letters in Spatial and Resource Sciences, 2019, vol. 12, issue 3, 215-232

Abstract: Abstract In the recent time, there has been increasing importance of tourism development to the global economic dynamics inspite of the global uncertainties. In this regard, the current study is aimed to find out if the volatility index (VIX) affects the returns of the firms operating in the tourism sector in 11 countries. The relationship between the variables in the study was tested through causality and cointegration tests. As a result, the change in the VIX was found to have causality towards the change in the tourism indices of the countries except for the USA and Sri Lanka. In addition, it was found that there was a long-term relationship between the variables and that the increase in VIX caused a decrease in the return of tourism indices. Hence, the current study offers significant policy direction for the tourism industry operations and the government of the examined destination countries.

Keywords: Financial contagion; Causality analysis; Tourism firms; Volatility index (search for similar items in EconPapers)
JEL-codes: C32 C61 G17 G32 L83 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s12076-019-00238-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:lsprsc:v:12:y:2019:i:3:d:10.1007_s12076-019-00238-w

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12076

DOI: 10.1007/s12076-019-00238-w

Access Statistics for this article

Letters in Spatial and Resource Sciences is currently edited by Henk Folmer and Amitrajeet A. Batabyal

More articles in Letters in Spatial and Resource Sciences from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-04-23
Handle: RePEc:spr:lsprsc:v:12:y:2019:i:3:d:10.1007_s12076-019-00238-w