The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries

“…They attribute it in large part to social distancing practices and lockdowns given the importance of the service sector in the modern economy. In line with this explanation, Carter et al ( 2021 ) document significant negative returns for US firms in travel‐related industries. When examining the firm characteristics that market participants use when factoring Covid‐related news into stock prices, they find that higher cash reserves and lower levels of debt mitigated the negative effects of Covid.…”

Section: Studies Of Economic Effects Of Covid‐19 On Financial Marketsmentioning

confidence: 86%

Effects of the Covid‐19 pandemic on derivatives markets: Evidence from global futures and options exchanges

Emm

Gay

et al. 2022

Journal of Futures Markets

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We examine key developments in trade-related activity on global derivatives markets during the Covid-19 pandemic. We first document significant increases in volumes and open interest. Drawing upon techniques from network theory, we next find greater market interconnectedness and notable changes in market centrality. For US exchanges, we examine their response to the increased market uncertainty and find large and more frequent changes to margin requirements. We also find a considerable drop in trader participation driven mainly by noncommercial traders along with an increase in the percent of open interest held by commercial shorts and noncommercial longs.

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“…Many studies have been conducted to test the impact of this novel coronavirus spread worldwide. While (Carter et al, 2021;Kumari et al, 2021;Maneenop & Kotcharin, 2020) examine the impacts on the global airline industry (Hu et al, 2021;Pandey & Kumar, 2021;Pandey & Kumari, 2020a;Pham et al, 2021;Yang et al, 2020) examine the impacts on the tourism industry, (Alam et al, 2020;Baker et al, 2020;Kandil Göker et al, 2020;Pandey & Kumari, 2021b, 2021a, 2021c, 2021dPolemis & Soursou, 2020) examine the impact of the pandemic on the overall stock market. The covid-19 pandemic has created great turmoil and adversely affected the global financial system.…”

Section: Introductionmentioning

confidence: 99%

Impacts of the global pandemic on returns and volatilities of cryptocurrencies

Kumar

Kumari

2022

IJABF

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Employing the standard event study methodology and the OLS market model to examine how the global pandemic announcement impacted cryptocurrencies, we test the null hypotheses that "the global pandemic declaration did not significantly impact the abnormal returns of the cryptocurrencies", and "during the global pandemic declaration, the cryptocurrencies did not experience any significant abnormal volatilities". The average abnormal return on t-2 was nearly minus 40 percent, which is the highest negative value during the 61-day event window. The cumulative average returns are significantly negative during the event window. The global pandemic news has significantly impacted cryptocurrencies and are more volatile during the outbreak. The study's findings will empower the investors to implement proper investment strategies during emergencies.

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The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries

Cited by 74 publications

References 12 publications

Impact of COVID-19 on the connectedness across global hospitality stocks

Impact of COVID-19 on the connectedness across global hospitality stocks

Effects of the Covid‐19 pandemic on derivatives markets: Evidence from global futures and options exchanges

Impacts of the global pandemic on returns and volatilities of cryptocurrencies

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