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Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model

Given that the United Nations views environmental, social, and governance (ESG) as a practical framework for anchoring responsible corporate behavior to achieve its sustainable development goals, this study constructs an autoregressive jump intensity trend (ARJI-trend) model to determine if ESG can...

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Autores principales: Chen, Chun-Da, Su, Ching-Hui (Joan), Chen, Ming-Hsiang
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Ltd. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9167863/
https://www.ncbi.nlm.nih.gov/pubmed/35693760
http://dx.doi.org/10.1016/j.tourman.2022.104581
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author Chen, Chun-Da
Su, Ching-Hui (Joan)
Chen, Ming-Hsiang
author_facet Chen, Chun-Da
Su, Ching-Hui (Joan)
Chen, Ming-Hsiang
author_sort Chen, Chun-Da
collection PubMed
description Given that the United Nations views environmental, social, and governance (ESG) as a practical framework for anchoring responsible corporate behavior to achieve its sustainable development goals, this study constructs an autoregressive jump intensity trend (ARJI-trend) model to determine if ESG can improve future resilience and create crisis-resilient value for chained-brand hotel corporations from the effects of COVID-19. The findings indicate that the ARJI-trend model indeed captures both the permanent and transitory components of the hotel corporation's ESG performance related to stock return dynamics. When ESG rating is taken into account, the following conclusions emerge: 1) the transitory component of time-varying return variance decreases but the permanent component does not; 2) the hotel corporation portfolios with a lower transitory component experiences a higher return, implying that the hotel corporations with a higher ESG rating appear to be more defensiveness; and 3) with proper asset reallocation, a portfolio centered on strong ESG-conscious hotel corporations is a safe-haven asset during market turmoil.
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spelling pubmed-91678632022-06-07 Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model Chen, Chun-Da Su, Ching-Hui (Joan) Chen, Ming-Hsiang Tour Manag Article Given that the United Nations views environmental, social, and governance (ESG) as a practical framework for anchoring responsible corporate behavior to achieve its sustainable development goals, this study constructs an autoregressive jump intensity trend (ARJI-trend) model to determine if ESG can improve future resilience and create crisis-resilient value for chained-brand hotel corporations from the effects of COVID-19. The findings indicate that the ARJI-trend model indeed captures both the permanent and transitory components of the hotel corporation's ESG performance related to stock return dynamics. When ESG rating is taken into account, the following conclusions emerge: 1) the transitory component of time-varying return variance decreases but the permanent component does not; 2) the hotel corporation portfolios with a lower transitory component experiences a higher return, implying that the hotel corporations with a higher ESG rating appear to be more defensiveness; and 3) with proper asset reallocation, a portfolio centered on strong ESG-conscious hotel corporations is a safe-haven asset during market turmoil. Elsevier Ltd. 2022-12 2022-06-06 /pmc/articles/PMC9167863/ /pubmed/35693760 http://dx.doi.org/10.1016/j.tourman.2022.104581 Text en © 2022 Elsevier Ltd. 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
Chen, Chun-Da
Su, Ching-Hui (Joan)
Chen, Ming-Hsiang
Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model
title Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model
title_full Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model
title_fullStr Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model
title_full_unstemmed Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model
title_short Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model
title_sort are esg-committed hotels financially resilient to the covid-19 pandemic? an autoregressive jump intensity trend model
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9167863/
https://www.ncbi.nlm.nih.gov/pubmed/35693760
http://dx.doi.org/10.1016/j.tourman.2022.104581
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