The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries.
COVID-19
Event study
Market reaction
Multi-variate regression model
Journal
Finance research letters
ISSN: 1544-6131
Titre abrégé: Financ Res Lett
Pays: Netherlands
ID NLM: 101768122
Informations de publication
Date de publication:
Jan 2022
Jan 2022
Historique:
received:
13
01
2021
revised:
24
03
2021
accepted:
02
04
2021
entrez:
11
1
2022
pubmed:
12
1
2022
medline:
12
1
2022
Statut:
ppublish
Résumé
This paper investigates the stock market performance from the second half of February through the latter portion of March 2020 for U.S. travel-related firms (airlines, restaurants, and hotels) in response to the COVID-19 pandemic. Clearly the reduction in travel was negative news for the travel industry; however, we focus on the factors used by market participants to price the information into stock prices. We find that larger firms with greater cash reserves and higher market-to-book ratios experienced less negative returns, while firms with greater leverage were penalized more. Additionally, we find that cash reserves were particularly important for hotels.
Identifiants
pubmed: 35013674
doi: 10.1016/j.frl.2021.102047
pii: S1544-6123(21)00128-8
pmc: PMC8733894
doi:
Types de publication
Journal Article
Langues
eng
Pagination
102047Informations de copyright
© 2021 Elsevier Inc. All rights reserved.
Références
J Behav Exp Finance. 2020 Dec;28:100387
pubmed: 32868990
Financ Res Lett. 2021 Nov;43:101977
pubmed: 33613130