scholarly journals Much ado about nothing? Smoking bans and Germany's hospitality industry

2012 ◽  
Vol 44 (35) ◽  
pp. 4539-4551 ◽  
Author(s):  
Michael Kvasnicka ◽  
Harald Tauchmann
Keyword(s):  
Hospitality Industry ◽  
Smoking Bans ◽  
Much Ado About Nothing

The Impact of Smoking Bans on the Hospitality Industry: New Evidence from Stock Market Returns

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Jonathan T. Tomlin
Keyword(s):  
Stock Returns ◽  
Hospitality Industry ◽  
Market Value ◽  
Smoking Ban ◽  
Smoking Bans ◽  
Market Returns ◽  
Stock Market Returns ◽  
Abnormal Stock Returns ◽  
The Impact ◽  
New Evidence

Abstract The majority of over 150 studies conclude that smoking bans do not have adverse effects on the revenues, profits, or employment of hospitality industry firms. However, several important criticisms have recently been raised which call into question many of the prior results. I examine the market value impact of a proposed smoking ban using a sample and methodology not subject to the perceived shortcomings in prior studies – an event study on the Indian hospitality industry. Contrary to the results in most prior studies, I find negative abnormal stock returns to portfolios of the hospitality industry firms examined upon the announcement of a proposed smoking ban. These results support the conclusion that a smoking ban lowered the aggregate market value of these firms.

Finally a Smoking Gun? Compensating Differentials and the Introduction of Smoking Bans

2022 ◽  
Vol 14 (1) ◽  
pp. 75-106
Author(s):  
Daniel Wissmann
Keyword(s):  
Simple Model ◽  
Hospitality Industry ◽  
Smoking Ban ◽  
Compensating Differentials ◽  
Smoking Bans ◽  
Hours Worked ◽  
Percent Decline

Using the staggered introduction of smoking bans in the German hospitality industry over 2007–2008, I find a robust 2.4 percent decline in the daily earnings of workers in bars and restaurants associated with the most comprehensive smoking ban. This effect is unlikely to be driven by a decline in hospitality revenues or hours worked but is consistent with a simple model of compensating differentials. (JEL I12, I18, J22, J31, J81, L83)

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