Risk assessment in airlines stocks market

Sato, Renato Cesar

doi:10.1590/s2238-10312013000200019

Cited by 5 publications

(4 citation statements)

References 15 publications

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“…Comparing the performance of North American and European airlines' stock portfolios, Sato (2013) finds that the global financial crisis of 2008-09 has a major effect on the North American market compared to the European one. The fluctuation in aviation market is the result of both internal and external factors, and the development of financial instruments plays an important role on the liquidity dependence of investment.…”

Section: Impacts Of the Pandemic On The Transportation Industrymentioning

confidence: 99%

COVID-19 Outbreak and Sectoral Performance of the Australian Stock Market: An Event Study Analysis

Alam¹,

Wei²,

Wahid³

2022

Preprint

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The outbreak of COVID-19 has weakened the economy of Australia and its capital market since early 2020. The overall stock market has declined. However, some sectors become highly vulnerable while others continue to perform well even in the crisis period. Given this new reality, we seek to investigate the initial volatility and the sectoral return. In this study, we analyse data for eight sectors such as, transportation, pharmaceuticals, healthcare, energy, food, real estate, telecommunications and technology of the Australian stock market. In doing so, we obtain data from Australian Securities Exchange (ASX) and analysed them based on `Event Study' method. Here, we use the 10-days window for the event of official announcement of the COVID-19 outbreak in Australia on 27 February, 2020. The findings of the study show that on the day of announcement, the indices for food, pharmaceuticals and healthcare exhibit impressive positive returns. Following the announcement, the telecommunications, pharmaceuticals and healthcare sectors exhibit good performance, while poor performance is demonstrated by the transportation industry. The findings are vital for investors, market participants, companies, private and public policymakers and governments to develop recovery action plans for vulnerable sectors and enable investors to regain their confidence to make better investment decisions.

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Section: Impacts Of the Pandemic On The Transportation Industrymentioning

confidence: 99%

COVID-19 Outbreak and Sectoral Performance of the Australian Stock Market: An Event Study Analysis

Alam¹,

Wei²,

Wahid³

2022

Preprint

View full text Add to dashboard Cite

show abstract

“…Comparing the performance of North American and European airlines' stock portfolios, Sato (2013) finds that the global financial crisis of 2008–2009 has a major effect on the North American market compared to the European one. The fluctuation in aviation market is the result of both internal and external factors, and the development of financial instruments plays an important role on the liquidity dependence of investment.…”

Section: Literature Reviewmentioning

confidence: 99%

COVID‐19 outbreak and sectoral performance of the Australian stock market: An event study analysis

Alam

Wei

Wahid

2020

Australian Economic Papers

103

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The outbreak of COVID‐19 has weakened the economy of Australia and its capital market since early 2020. The overall stock market has declined. However, some sectors become highly vulnerable while others continue to perform well even in the crisis period. Given this new reality, we seek to investigate the initial volatility and the sectoral return. In this study, we analyse data for eight sectors such as, transportation, pharmaceuticals, healthcare, energy, food, real estate, telecommunications and technology of the Australian stock market. In doing so, we obtain data from Australian Securities Exchange (ASX) and analysed them based on ‘Event Study’ method. Here, we use the 10‐days window for the event of official announcement of the COVID‐19 outbreak in Australia on 27 February 2020. The findings of the study show that on the day of announcement, the indices for food, pharmaceuticals and healthcare exhibit impressive positive returns. Following the announcement, the telecommunications, pharmaceuticals and healthcare sectors exhibit good performance, while poor performance is demonstrated by the transportation industry. The findings are vital for investors, market participants, companies, private and public policymakers and governments to develop recovery action plans for vulnerable sectors and enable investors to regain their confidence to make better investment decisions.

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“…Borenstein and Zimmerman (1988) [2] use CAPM market model to analyze the impact of 74 plane crashes on the airline sector in the US from the 1960s to 1985.They reported that airline crashes has an adverse impact on the revenue growth. Sato (2013) [17] Comparing the performance of European airline and North American stock portfolios, points out the 2008 global financial crisis has a main effect on the North American market compared to the European one. Sakkakom and Suntichai (2020) examined the shortrange impact of the new COVID-19 pandemic on 52 listed aviation companies across the globe by using event study methodology.…”

Section: International Events and Aviation Industrymentioning

confidence: 99%

Untitled

2023

Asian J. Manage. Commerce

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The outburst of Covid-19 pandemic has slowed down the economic progress both in developed and developing nations. Since its outburst, the stock markets have declined all around the globe. However, some industries become profoundly weak while others proceed to perform well even in the crisis period. Given this new phenomena we try to study the short-term effects of the outburst of new contagious disease COVID-19, on four BSE listed aviation companies in India by employing event study methodology. The outcomes reveal that Indian aviation stock returns drop more significantly than the BSE stock market returns in response to the four main COVID-19 press statements that were made during first half of year 2020. Generally, stockholders respond contrarily in the four selected events. The strong over response shown by the investors is noted during the on-event period of the announcements made by World Health Organization and the Indian government. Besides, the results endorses that investors of Indigo and Spicejet were more reactive to the announcements made related to Covid-19 outbreak. The findings demand for instant policy framework in order to lighten the bad effects of the pandemic in the airline sector in India.

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Risk assessment in airlines stocks market

Cited by 5 publications

References 15 publications

COVID-19 Outbreak and Sectoral Performance of the Australian Stock Market: An Event Study Analysis

COVID-19 Outbreak and Sectoral Performance of the Australian Stock Market: An Event Study Analysis

COVID‐19 outbreak and sectoral performance of the Australian stock market: An event study analysis

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