Crisis, firm characteristics and stock performance: evidence from Hospitality and Tourism sector

Jawed, Mohammad Shameem; Tapar, Archit Vinod; Dhaigude, Amol S.

doi:10.1080/02508281.2021.1899536

Cited by 21 publications

(9 citation statements)

References 79 publications

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“…The war is expected to impact the growth of firms with higher BTM. In contrast to previous literature (Jawed et al, 2021;Pandey and Kumar, 2022a), financial leverage negatively drives abnormal returns during shorter event windows but is insignificant in the longer windows, indicating that firms with higher debt levels lead to more negative returns than those with lower debt levels. This inference is attributable to the Russian government's decision to settle the dues of enemy nations in rubles only [8].…”

Section: Firm-and Country-specific Variablescontrasting

confidence: 99%

“…The BTM ratio is a proxy for risk (Fama and French, 1995), and high BTM stocks have high risk-return levels. Additionally, we include financial leverage, which is widely discussed in the literature as a driver of stock returns (Jawed et al, 2021;Opler and Titman, 1994;Pandey and Kumar, 2022a, b). ROA is expected to drive event-induced abnormal returns, thus making it a measure of financial performance (Frankel and Lee, 1998;Pandey and Kumar, 2022a).…”

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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What makes firms vulnerable to the Russia–Ukraine crisis?

Abbassi¹,

Kumari²,

Pandey³

2022

JRF

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PurposeThis study examines the impact of the Russia–Ukraine war on the constituent firms of the leading stock market indices of the G7 countries to provide insights into the vulnerability of firms to war events.Design/methodology/approachThis study employs the event study method on a sample of 531 firms covering the period from 02 March 2021 to 08 March 2022 and conducts a cross-sectional analysis of cumulative abnormal returns and country- and firm-specific variables.FindingsRisk exposure and trade dependence trigger invasion-generated negative abnormal returns. The authors demonstrate that stock prices are fragile to geopolitical risks and trade dependence. Consistent with previous literature, the authors find evidence of a size anomaly and high risk associated with a higher book-to-market ratio.Research limitations/implicationsThis study has implications for policymakers identifying the firm-specific variables driving event-induced returns. While providing insights into the geographical diversification of funds, this study shows the heterogeneous characteristics of firms operating in these countries.Originality/valuePrevious studies on the Russia–Ukraine war have been limited to analyzing the behavior of leading stock market indices without examining firm-level variations triggered by the war. This study fills this gap and contributes to the growing literature on the Russia–Ukraine crisis in two ways: first, it provides firm-level evidence from the G7 countries in addition to how global stock market indices have reacted to the invasion and second, it uses cross-sectional analysis to provide evidence of the characteristics that make firms resilient to wars.HighlightsWe are the first to report firm-level evidence of the Russia–Ukraine war effectsFirms in France and the United States are unaffectedStock prices are fragile to geopolitical risks and considerable dependence on tradeHigher book-to-market exposes the firms to the risk of exogenous shocksSmaller firms outperform large firms in the G7 stock markets

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Section: Firm-and Country-specific Variablescontrasting

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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What makes firms vulnerable to the Russia–Ukraine crisis?

Abbassi¹,

Kumari²,

Pandey³

2022

JRF

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“…Other streams of literature explored the effects of Covid-19 on firms' performances considering the stock market [9,10] and the impact of CSR activities [11][12][13][14]. Some papers focus on niches, considering the performance of the stock market in specific sectors, as the travel and leisure industry [15] or the hospitality sector [16]. current challenges and issues firms are facing.…”

Section: Introductionmentioning

confidence: 99%

Firms’ challenges and social responsibilities during Covid-19: A Twitter analysis

et al. 2021

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This paper offers insights on the major issues and challenges firms face in the Covid-19 pandemic and their concerns for Corporate Social Responsibility (CSR) themes. To do so, we investigate large Italian firms’ discussions on Twitter in the first nine months of the pandemic. Specifically, we ask: How is firms’ Twitter discussion developing during the Covid-19 pandemic? Which CSR dimensions and topics do firms discuss? To what extent do they resonate with the public? We downloaded Twitter posts by the accounts of large Italian firms, and we built the bipartite network of accounts and hashtags. Using an entropy-based null model as a benchmark, we projected the information contained in the network into the accounts layers, identifying a network of accounts. We find that the network is composed of 13 communities and accounts at the core of the network focus on environmental sustainability, digital innovation, and safety. Firms’ ownership type does not seem to influence the conversation. While the relevance of CSR hashtags and stakeholder engagement is relatively small, peculiarities arise in some communities. Overall, our paper highlights the contribution of online social networks and complex networks methods for management and strategy research, showing the role of online social media in understanding firms’ issues, challenges, and responsibilities, with common narratives naturally emerging from data.

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“…The stock prices of listed hotels have been negatively affected by the COVID-19 outbreak [ 17 ]. Jawed et al [ 18 ] investigated the negative impact of COVID-19 on stock returns for hospitality and tourism firms in India using an event study method (ESM). The U.S. restaurant industry has negatively responded to the COVID-19 outbreak [ 12 ].…”

Section: Methodology and Research Designmentioning

confidence: 99%

Self-restraint, subsidy, and stock market reactions to the coronavirus outbreak: Evidence from the Japanese restaurant industry

Sakawa

Watanabel

2022

PLoS ONE

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This study examined the stock market response of the Japanese restaurant industry to the announcement of the self-restraint request and subsidy for restaurants by the Japanese government during the coronavirus outbreak. Using the event study approach, it was found that the market reacted negatively to the self-restraint request and positively to the subsidy for restaurants. Following the announcement of the self-restraint request, investors in the restaurant industry responded positively to the government’s stringent policy responses. Conversely, following the announcement on the “dining-out” subsidy, investors reacted negatively to the stringent government policies. Our findings provide useful information for policy makers and practitioners to mitigate losses in the hospitality industry during the pandemic.

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Crisis, firm characteristics and stock performance: evidence from Hospitality and Tourism sector

Cited by 21 publications

References 79 publications

What makes firms vulnerable to the Russia–Ukraine crisis?

What makes firms vulnerable to the Russia–Ukraine crisis?

Firms’ challenges and social responsibilities during Covid-19: A Twitter analysis

Self-restraint, subsidy, and stock market reactions to the coronavirus outbreak: Evidence from the Japanese restaurant industry

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