| By: |
Anastasios Zopiatis (Department of Hotel and Tourism Management School of Business and Economics Cyprus University of Technology.);
Christos S. Savva (Department of Commerce, Finance and Shipping School of Business and Economics Cyprus University of Technology.);
Neophytos Lambertides (Department of Commerce, Finance and Shipping School of Business and Economics Cyprus University of Technology.);
Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences 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. 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. |
| JEL: |
C21 C58 G01 H12 Z32 |
| Date: |
2017–06 |
| URL: |
http://d.repec.org/n?u=RePEc:ucm:doicae:1716&r=tur |