This study examines the short-term impact of the 2019 novel coronavirus (COVID-19) outbreak on 52 listed airline companies around the world by using event study methodology. The results demonstrate that airline stock returns decline more significantly than the market returns after three major COVID-19 announcements were made. Overall, investors react differently during the three selected events. The strongest overreaction is noted in the post-event period of the World Health Organization's and President Trump's official announcements. Moreover, the findings confirm that traders in Western countries are more responsive to recent information than the rest of the world. The findings call for immediate policy designs in order to alleviate the impact of the pandemic in the airline industry around the globe.

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A singular nonlinear partial differential equation (PDE) is introduced, which can be interpreted as the evolution of the risk preference in the optimal investment problem under the random risk process. The unknown quantity is related to the Arrow-Pratt coefficient of relative risk aversion with respect to the optimal value function. We show the existence of monotone traveling wave solutions and the nonexistence of non-monotone such solutions, which are suitable from the standpoint of financial economics.

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