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Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study
This paper examines the short-term market reaction of the airline industry to the declaration of COVID-19 as a global pandemic and to the announcements of the effectiveness of COVID-19 vaccines in the US. Using an event study, we observe a negative and statistically significant stock price reaction...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier Ltd.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9393161/ https://www.ncbi.nlm.nih.gov/pubmed/36034526 http://dx.doi.org/10.1016/j.jairtraman.2022.102281 |
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author | Martins, António Miguel Cró, Susana |
author_facet | Martins, António Miguel Cró, Susana |
author_sort | Martins, António Miguel |
collection | PubMed |
description | This paper examines the short-term market reaction of the airline industry to the declaration of COVID-19 as a global pandemic and to the announcements of the effectiveness of COVID-19 vaccines in the US. Using an event study, we observe a negative and statistically significant stock price reaction to the announcement of COVID-19 as a global pandemic. In contrast, we find a positive impact on the stock market due to the announcements of the effectiveness of COVID-19 vaccines in the US. These results are consistent with the investor sentiment hypothesis and the asset-pricing perspective. The empirical results also show a higher stock market reaction to the announcement of the effectiveness of the Pfizer–BioNTech COVID-19 vaccine in the US compared to the announcements of the effectiveness of subsequent vaccines. This result is explained by the innovation race competition effect and the greater reduction in investor uncertainty levels. These reactions were reinforced or mitigated by firm-specific characteristics such as liquidity, size, leverage, ownership concentration, state control and business model (i.e., low-cost versus full-service). |
format | Online Article Text |
id | pubmed-9393161 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Elsevier Ltd. |
record_format | MEDLINE/PubMed |
spelling | pubmed-93931612022-08-22 Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study Martins, António Miguel Cró, Susana J Air Transp Manag Article This paper examines the short-term market reaction of the airline industry to the declaration of COVID-19 as a global pandemic and to the announcements of the effectiveness of COVID-19 vaccines in the US. Using an event study, we observe a negative and statistically significant stock price reaction to the announcement of COVID-19 as a global pandemic. In contrast, we find a positive impact on the stock market due to the announcements of the effectiveness of COVID-19 vaccines in the US. These results are consistent with the investor sentiment hypothesis and the asset-pricing perspective. The empirical results also show a higher stock market reaction to the announcement of the effectiveness of the Pfizer–BioNTech COVID-19 vaccine in the US compared to the announcements of the effectiveness of subsequent vaccines. This result is explained by the innovation race competition effect and the greater reduction in investor uncertainty levels. These reactions were reinforced or mitigated by firm-specific characteristics such as liquidity, size, leverage, ownership concentration, state control and business model (i.e., low-cost versus full-service). Elsevier Ltd. 2022-10 2022-08-22 /pmc/articles/PMC9393161/ /pubmed/36034526 http://dx.doi.org/10.1016/j.jairtraman.2022.102281 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 Martins, António Miguel Cró, Susana Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study |
title | Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study |
title_full | Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study |
title_fullStr | Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study |
title_full_unstemmed | Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study |
title_short | Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study |
title_sort | airline stock markets reaction to the covid-19 outbreak and vaccines: an event study |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9393161/ https://www.ncbi.nlm.nih.gov/pubmed/36034526 http://dx.doi.org/10.1016/j.jairtraman.2022.102281 |
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