Tourism Stocks in Times of Crises: An Econometric Investigation of Unexpected Non-macroeconomic Factors
Christos Savva (),
Neophytos Lambertides and
No EI2017-15, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute
Following the recent terrorist attacks in Paris, the European media emphatically pronounced that billions of Euros were wiped from tourism related stocks. The theoretical relationship of the industry with such unexpected non-macro incidents received moderate academic coverage. Nevertheless, the quantifiable impact of such events on tourism-specific stock values, both in terms of returns and volatility, is still a barren landscape. Using econometric methodology, the paper investigates the reaction of five hospitality/tourism stock indices to 150 incidents depicting major Acts of Terrorism, ‘Acts of God’, and War conflicts in the 21st Century. Empirical findings underscore the effect of such incidents on hospitality/tourism stock indices, with distinctive differences among the different types, the specificities of each event, and the five regions under investigation. This paper contributes to the extant literature and enhances our conceptual capital pertaining to the industry’s current financial practices that are related to stock performance and behavior.
Keywords: Unexpected Non-macroeconomic Factors; Stock Market; Event Study; Econometric Modeling (search for similar items in EconPapers)
JEL-codes: C21 C58 G01 H12 Z32 (search for similar items in EconPapers)
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Working Paper: Tourism Stocks in Times of Crises: An Econometric Investigation of Unexpected Non-macroeconomic Factors (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ems:eureir:100332
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