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The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries
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 indu...
Autores principales: | , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier Inc.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8733894/ https://www.ncbi.nlm.nih.gov/pubmed/35013674 http://dx.doi.org/10.1016/j.frl.2021.102047 |
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author | Carter, David Mazumder, Sharif Simkins, Betty Sisneros, Eric |
author_facet | Carter, David Mazumder, Sharif Simkins, Betty Sisneros, Eric |
author_sort | Carter, David |
collection | PubMed |
description | 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. |
format | Online Article Text |
id | pubmed-8733894 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Elsevier Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-87338942022-01-06 The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries Carter, David Mazumder, Sharif Simkins, Betty Sisneros, Eric Financ Res Lett Article 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. Elsevier Inc. 2022-01 2021-04-06 /pmc/articles/PMC8733894/ /pubmed/35013674 http://dx.doi.org/10.1016/j.frl.2021.102047 Text en © 2021 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Carter, David Mazumder, Sharif Simkins, Betty Sisneros, Eric The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries |
title | The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries |
title_full | The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries |
title_fullStr | The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries |
title_full_unstemmed | The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries |
title_short | The stock price reaction of the COVID-19 pandemic on the airline, hotel, and tourism industries |
title_sort | stock price reaction of the covid-19 pandemic on the airline, hotel, and tourism industries |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8733894/ https://www.ncbi.nlm.nih.gov/pubmed/35013674 http://dx.doi.org/10.1016/j.frl.2021.102047 |
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