Tourism stocks in times of crises: An econometric investigation of unexpected non-macroeconomic factors

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 quan...

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Detalles Bibliográficos
Autores: Zopiatis, Anastasios, Savva, Christos S., Lambertides, Neophytos, McAleer, Michael
Tipo de recurso: informe técnico
Fecha de publicación:2017
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/22905
Acceso en línea:https://hdl.handle.net/20.500.14352/22905
Access Level:acceso abierto
Palabra clave:C21
C58
G01
H12
Z32
Unexpected Non-macroeconomic Factors
Stock Market
Event Study
Econometric Modeling.
Crisis económicas
Econometría (Economía)
Turismo
5307.06 Fluctuaciones Económicas
5302 Econometría
5312.90 Economía Sectorial: Turismo
Descripción
Sumario: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.