| By: |
Anastasios Zopiatis (Cyprus University of Technology, Cyprus);
Christos S. Savva (Cyprus University of Technology, Cyprus);
Neophytos Lambertides (Cyprus University of Technology, Cyprus);
Michael McAleer (National Tsing Hua University, Taiwan; Erasmus School of Economics, Erasmus University Rotterdam, The Netherlands; Complutense University of Madrid, Spain; Yokohama National University, Japan) |
| Abstract: |
Following the recent terrorist attacks in Paris, the European media
emphatically pronounced that billions of euros were wiped from tourism related
stocks. This comes at a troublesome time for the tourism industry, in the
midst of a global financial crisis, and the unpredictable rise of radical
Islamic ideologies, which have caused chaos in the Middle East and Europe. The
relationship and vulnerability of the industry to non-macro incidents have
been well documented in the literature, mostly in theoretical terms.
Nevertheless, the quantifiable impact of such events on tourism-specific stock
values, both in terms of returns and volatility, received much less attention.
With the use of an econometric methodology, the paper aims to enhance our
conceptual capital pertaining to the effects of such possibilities on five
hospitality and tourism stock indices. The empirical findings are of interest
to stakeholders at all echelons of the spectra of the tourism and financial
industries. |
| Keywords: |
Tourism; Terrorism; Stock Market; Event Study; GJR; Econometric Modeling |
| JEL: |
C21 C58 G01 H12 Z32 |
| Date: |
2016–11–25 |
| URL: |
http://d.repec.org/n?u=RePEc:tin:wpaper:20160104&r=tur |