scholarly journals The impact of the COVID-19 outbreak on Chinese-listed tourism stocks

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Wenmin Wu ◽  
Chien-Chiang Lee ◽  
Wenwu Xing ◽  
Shan-Ju Ho
Keyword(s):  
Stock Returns ◽  
Cultural Differences ◽  
Stock Price ◽  
Negative Impact ◽  
Tourism Industry ◽  
Regression Analyses ◽  
Short Term ◽  
Tourism Sector ◽  
Event Study Method ◽  
The Impact

AbstractThis research explored the effects of the coronavirus disease (COVID-19) outbreak on stock price movements of China’s tourism industry by using an event study method. The results showed that the crisis negatively impacted tourism sector stocks. Further quantile regression analyses supported the non-linear relationship between the government’s responses and stock returns. The results present that the resurgence of the virus in Beijing did bring about a short-term negative impact on the tourism industry. The empirical results can be used for future researchers to conduct a comparative study of cultural differences concerning government responses to the COVID-19.

Epidemics and Chinese firms' stock returns: is COVID-19 different?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quang Thi Thieu Nguyen ◽  
Dao Le Trang Anh ◽  
Christopher Gan
Keyword(s):  
Stock Returns ◽  
Negative Impact ◽  
Stock Exchange ◽  
Market Performance ◽  
Disease Outbreaks ◽  
Stock Exchanges ◽  
Content Type ◽  
Event Study Method ◽  
Economic Shock ◽  
The Impact

PurposeThis study investigates the Chinese stocks' returns during different epidemic periods to assess their effects on firms' market performance.Design/methodology/approachThe study employs an event study method on more than 3,000 firms listed on Shanghai and Shenzhen stock exchanges during periods of SARS, H5N1, H7N9 and COVID-19FindingsEpidemics' effect on firms' stock returns is persistent up to 10 days after the event dates. Although the impact varies with types and development of the disease, most firms experience a negative impact of the epidemics. Among the epidemics, COVID-19 has the greatest impact, especially when it grows into a pandemic. The epidemics' impact is uneven across industries. In addition, B-shares and stocks listed on Shanghai Stock Exchange are more negatively influenced by the epidemic than A-shares and those listed on Shenzhen Stock Exchange.Research limitations/implicationsThe results of the study contribute to the limited literature on the effects of disease outbreaks as an economic shock on firm market performance. Given the possibility of other epidemics in the future, the study provides guidance for investors in designing an appropriate investing strategy to cope with the epidemic shocks to the market.Originality/valueThe research is novel in the way it compares and assesses the economic impact of different epidemics on firms and considers their impact at different development stages.

scholarly journals Revised Malaysian Shariah Screening: Its Impact on Islamic Capital Market

2019 ◽  
Vol 10 (1) ◽  
pp. 17
Author(s):  
Fauzias Mat Nor ◽  
Amir Shaharuddin ◽  
Ainulashikin Marzuki ◽  
Nur Ainna Ramli
Keyword(s):  
Stock Returns ◽  
Capital Market ◽  
Negative Impact ◽  
Advisory Council ◽  
Qualitative Assessment ◽  
Financial Ratio ◽  
Share Prices ◽  
Fund Managers ◽  
Event Study Method ◽  
The Impact

Shariah Advisory Council (SAC) of Securities Commission (SC) formulated a new revised Shariah screening methodology of two-tier quantitative assessment for activity-based screening benchmarks and the newly- formulated financial ratio benchmarks, while the qualitative assessment remains the same. The revised methodology is an effort to expand the Islamic capital market’s (ICM) international reach which is in line with the SC objectives. The objective of this paper is to examine the impact of the recent announcement of new changes in the Shariah screening methodology by the Malaysian Securities Commission on the share prices of the affected companies and Islamic capital market. We use an event study method to see if the changes have a significant reaction from the market, specifically, from investors and fund managers. On the announcement date, that is, on 29 November 2013, 158 non-Shariah compliant stocks were removed from the previous list of Shariah compliant stock that was issued in May 2013 and 16 stocks were added to the approved list. Out of 158 non-Shariah compliant stocks, only 137 stocks are available for the analysis. For the new Shariah compliant stocks, only 16 stocks are included in the sample. We find an immediate but short lived negative impact on the stock returns towards the deletion, but none towards the addition of new stocks to the Shariah index. However, the announcement has no significant impact on the overall return of the FBM Emas Shariah index.

scholarly journals ANALYSIS OF TRENDS IN THE DEVELOPMENT OF THE TOURISM SECTOR TAKING INTO STATISTICAL ACCOUNTING AND REPORTING

2021 ◽  
Author(s):  
Dina Turina
Keyword(s):  
Global Economy ◽  
Negative Impact ◽  
Tourism Industry ◽  
The State ◽  
Accounting System ◽  
Tourism Sector ◽  
Macroeconomic Indicators ◽  
Travel Industry ◽  
Effective Development ◽  
The Impact

The article deals the analysis of trends in the development of the tourism sector in modern conditions, taking into account statistical information and the impact of coronavirus on the tourism industry. It is determined that the tourism industry is important for the development of the state. The article identifies trends, threats, problems, challenges, risks and subjects as the main factors in the development of tourism in Ukraine. It is noted that the further development of tourism will ensure the realization of the socio-economic potential of the state in the short and strategic perspective. Also the effective development of the tourist complex depends on the availability of modern accounting systems, statistical observation, a systematic approach to the organization of which allows meeting the needs of authorities, specialists and society as a whole in sufficient and reliable information in the field of tourism. In addition, statistical indicators are needed to develop macroeconomic indicators: consumption, spending, investment, income, employment. Over the past 70 years, tourism has become a powerful sector of the global economy. Influencing key sectors of the economy, tourism is increasingly becoming one of the most important indicators of socio-economic development of both individual regions and the country as a whole. But with the spread of the coronavirus, the travel industry is at risk. Analyzed statistical data on the number and cost of sold tour packages, the number of served tourists, and so on. It should be noted that during the pandemic, it was tourism that suffered more than other industries, including due to border closures, air travel bans, quarantine measures, and the like. At the same time, UNWTO underlines the historical resilience of tourism and the ability to create jobs in the aftermath of crises, while also highlighting the importance of international cooperation and ensuring that this sector becomes a central part of recovery efforts. Practical proposals for overcoming the crisis are presented, the implementation of which will reduce the level of negative impact of the consequences of the pandemic on the economy of the tourism industry in Ukraine and the main directions for improving the statistical accounting system.

scholarly journals Influence of Board Reformation on the Stock Returns: an Event Study

2018 ◽  
Vol 7 (3.16) ◽  
pp. 71
Author(s):  
Bindya Kohli ◽  
Deepa Pillai
Keyword(s):  
Organizational Performance ◽  
Stock Returns ◽  
Event Study ◽  
Stock Prices ◽  
Stock Price ◽  
Negative Impact ◽  
Market Model ◽  
Age Related ◽  
The Board Of Directors ◽  
The Impact

Investor sentiments pertaining to stocks are propelled by the contentions of financial sector reforms, fiscal policy and management change. Any uncertainty has a significant impact on the stock prices and returns accruing to the company. The paper examines the effect of change in management on the stock returns of a corporate entity. Organizational performance is dependent on the realization of the numerous roles the board of directors are entrusted with. Any change in the composition of the board through the resignation, retirement or ouster can thus have a significant impact on the stock prices and returns accruing to the company. It is anticipated that voluntary resignations, age related turnovers have small or negative impact on the stock price reactions. The paper investigates the impact of the ouster of the Chairman of the Tata group on the volatility of the daily prices and returns of four companies under the Tata umbrella. Event study methodology has been adopted following the market model of return generating process. Investors react to the market information thereby affecting the security prices positively or negatively during the event window. The findings disclose market sentiments are affected on the occurrence of the event though the acceptance of the event may be unforeseen. 

Abnormal trading around common factor pricing models

2019 ◽  
Vol 12 (4) ◽  
pp. 317-334
Author(s):  
Jiexin Wang ◽  
Xue Han ◽  
Emily J. Huang ◽  
Christopher Yost-Bremm
Keyword(s):  
Stock Returns ◽  
Portfolio Management ◽  
Stock Price ◽  
Common Factor ◽  
Trading Strategies ◽  
Short Term ◽  
Content Type ◽  
Portfolio Strategies ◽  
Fama And French ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of factor-based trading strategies on pricing and volume. Design/methodology/approach The authors employ a regression discontinuity approach to identify abnormalities in volume or pricing around expected portfolio changes. In addition, the authors characterize more granular effects on pricing and volume as a result of portfolio re-classification through Fama and Macbeth (1973) regressions. Findings The authors find that firms which are predicted to transfer among the factor portfolios of Fama and French (1993) exhibit strong and statistically significant short-term variation in stock price and volume. Short-term returns around the cutoff values comprising SMB and HML tend to be temporarily high if the firm is predicted to move into a long component of a factor-mimicking portfolio, and temporarily low if moving into a short component. Similar results are apparent when examining movement in and out of the 25 size and book-to-market sorted test asset portfolios. Practical implications The use of portfolio strategies formulated on the basis of sorting procedures, while once upon a time a niche market in the portfolio management industry, is now ubiquitous. The results of this study raise interesting methodological questions about the pricing implications arising from these common methodologies. Originality/value This study makes a number of contributions. First, it contributes to the idea that the publication or dissemination of trading strategies or – more generally – common portfolio sorting methods, leads to effects on pricing and volume through commonly motivated trading pressure. In other words, recipe-like discoveries of advantageous trading strategies lead to a synthetic creation of demand. Second, by noting that a lot of factor-focused trading activity begins around July and August of each year, the study relates to existing literature which documents seasonal variation in stock returns and volume. The findings raise questions about what guides institutional investors’ portfolio allocation decisions and whether these are optimal in aggregate.

scholarly journals The impact of quarantine due to COVID-19 pandemic on the tourism industry in Lviv (Ukraine)

2020 ◽  
Vol 18 (2) ◽  
pp. 194-205
Author(s):  
Mykhailo Rutynskyi ◽  
Halyna Kushniruk
Keyword(s):  
Negative Impact ◽  
Tourism Industry ◽  
World Heritage Site ◽  
Economic Losses ◽  
Heritage Site ◽  
Unesco World Heritage Site ◽  
Tourism Sector ◽  
The Impact ◽  
The City

The global crisis caused by COVID-19 pandemic and the introduction of long-term international quarantine measures have had a very negative impact on the tourism industry. The paper aims to analyze the sectoral losses of the tourism industry during quarantine due to the COVID-19 pandemic in Lviv, a city whose historical center is included in the UNESCO World Heritage Site. The article highlights the potential of the tourism industry before the introduction of quarantine measures, as well as using extrapolation methods estimates the economic losses of the tourist industry of Lviv in the conditions of long-term quarantine. Besides, the anti-crisis measures of the city authorities to minimize the impact of quarantine due to COVID-19 pandemic on the tourism industry of Lviv are described. Based on a statistical analysis of the forecasted economic losses, it is recommended that city authorities abolish some local taxes and fees in the tourism sector to restore its potential as soon as possible.

scholarly journals The effect of regional tourism on economic development: Case study: The EU countries

2021 ◽  
pp. 67-75
Author(s):  
Andriy Motsa ◽  
Svitlana Rybakova ◽  
Tetiana Shelemetieva ◽  
Iryna Zhuvahina ◽  
Liliia Honchar
Keyword(s):  
Economic Development ◽  
Negative Impact ◽  
Tourism Industry ◽  
Quantitative Methodology ◽  
Short Term ◽  
Eu Countries ◽  
Regional Tourism ◽  
Regional Strategies ◽  
The Impact ◽  
The Eu

Transformations of the tourism market structure in a pandemic necessitate a study of the extent to which EU countries can provide their citizens with tourism products to minimize the negative impact of the pandemic and, consequently, the negative impact on economic development. This article aimed to develop recommendations for minimizing the negative impact of reducing regional tourism on economic development through the support of domestic tourism. This research uses a quantitative methodology based on indicators of growth of tourist external and internal flows in the regions, the growth rate of economic regions of the EU for 2015-2019. The following countries were selected for correlation analysis: Belgium, Bulgaria, Czech Republic, Germany, Estonia, Greece, Spain, and Italy. The analysis of the impact of regional tourism on economic development in the EU for 2015-2019 indicates the need to develop regional strategies for smart specializations of the tourism industry based on the most attractive industries for tourists. It is determined that within the EU, economic development is less dependent on developed tourist regions due to potentially low tourist costs, as a result - short-term revenues from the industry. It is proved that regions with a high level of tourist flows can provide economic development by increasing the innovation of industries related to tourism, as such industries attract tourists. In a pandemic, businesses need to focus on promoting regional products and shift the focus to domestic consumption within the country. The theoretical value of this study is that regional tourism affects the economic development of the EU countries through the total costs of tourists, the volume of which in the short term has a negligible impact on the region's development. At the same time, the income of the tourism industry as a contribution to the economy is overestimated in the scientific literature.

scholarly journals The Impact of Climate Change on Tourism: A Causality Analysis

2020 ◽  
Vol 8 (2) ◽  
pp. 515
Author(s):  
Murat Atasoy ◽  
Filiz Guneysu Atasoy
Keyword(s):  
Climate Change ◽  
Carbon Dioxide ◽  
Climatic Change ◽  
Methane Emission ◽  
Negative Impact ◽  
Carbon Dioxide Emission ◽  
Tourism Industry ◽  
Long Run ◽  
Tourism Sector ◽  
The Impact

Tourism industry is one of the primary sectors that contribute to economic growth of countries worldwide. Since it requires appropriate weather conditions and clean environment, climate changes can significantly affect the sector. Therefore, this study examines the causality and long-run relationship between the climate change and tourism sector in Turkey. To estimate the potential long-run relationship between variables, Granger-Causality test is applied to data from 1960 to 2016. The study uses World Development Indicator Data released by World Bank. For the analysis, carbon-dioxide emission, methane emission, energy use (oil equivalent), and forest land are standing for climate change indicators. International tourist arrivals and tourism revenues represent for tourism sector’s variables. The findings show that there is a negative and significant coefficient of climate change on tourism sector. Also, in average, climatic change indicators have unidirectional and negative impact on international tourism revenue. Another finding is that climate change deteriorates to environment by augmenting carbon dioxide emission and methane emission. As a result, climatic change can weaken the tourism industry which can decrease the speed of Turkey’s economic development. In the long run, this research can pioneer assessing the economic and environmental impacts of climate change in the tourism sector bases.

scholarly journals Globalization of the tourism industry: scales, levels and institutional formats

2019 ◽  
Vol 17 (2) ◽  
pp. 563-574 ◽  
Author(s):  
Dmytro Lukianenko ◽  
Anatoly Poruchnik ◽  
Yaroslava Stoliarchuk ◽  
Olena Liutak
Keyword(s):  
Large Scale ◽  
Significant Contribution ◽  
Negative Impact ◽  
Tourism Industry ◽  
International Tourism ◽  
Infrastructure Development ◽  
Tourism Sector ◽  
Total Investment ◽  
The Impact ◽  
Tourist Flow

The article presents the author’s view of the impact of globalization, internationalization, transnationalization on the development of the international tourism industry with the substantiation of the features of institutional transformations caused by large-scale, structural and other changes in the world economy, in particular, the analysis of the development of the tourism industry of the leading countries, which are centers to attract tourist flow (France, USA, Spain, China, Italy), as well as Ukraine. As a result of correlation and regression models, the potential of the industry and its investment attractiveness were established. It is proved that within the countries’ economic activity, the tourism sector makes a significant contribution to the creation of the gross national product. Characterizing the coefficients in the multivariate regression equation, it can be stated that the most significant impact on GDP is the factor of “Income from international tourism”, since for all countries, it has a positive value greater than one. As for such a factor as “Total investment in the tourism industry”, for all but Ukraine, this factor is characterized by a negative impact on GDP, which determines the high costs of infrastructure development, which are not always paid off by the income of the incoming tourist flow in the short term.

Community Development and Role of Tourism: A Case Study of Tourist Destination Manali in Himachal Pradesh (India)

2016 ◽  
Vol 2 (1) ◽  
Author(s):  
Sunil
Keyword(s):  
Traffic Congestion ◽  
Local Community ◽  
Negative Impact ◽  
Himachal Pradesh ◽  
Tourism Industry ◽  
Cultural Development ◽  
Infrastructure Development ◽  
Tourism Sector ◽  
The Government ◽  
Agriculture Products

Tourism sector has a significant role in the economic development of our country. Tourism sector has contributed 6.88 percent to the GDP and has 12.36 percent share in employment (direct and indirect) in the year 2014. It has also a significant share in foreign exchange earnings. The benefit of tourism mostly goes to the local community (Sonya & Jacqueline, Mansour E. Zaei & Mahin E. Zaei, 2013). In this paper, an attempt has been made to assess how the tourism industry has created an opportunity for the economic, political, social and cultural development of the local community at Manali in Himachal Pradesh (India) and also tried to study the problems that are associated with the tourism in the region. The study found that the tourism industry has been extending its contribution for the development of local community at Manali. It has been providing employment, business and investment opportunities, revenue generation for the government, encouraging the community to promote and preserve its art, culture and heritage, raising the demand of agriculture products, provided opportunities for local people to run and work in the transport business and by promoting MSMEs in the region. Besides the opportunities, the tourism industry has also added many problems to the local community. Traffic congestion, increase in water and air pollution, solid waste generation, degradation of the cultural heritage, ecological imbalances, rise in cost of living, increase in crime, noise and environment pollution, migration of people to the region, negative impact on local culture, and extra pressure on civic services during the tourists season, are the problems associated with the tourism. The study suggest that effective management of natural resources, dissemination of environment protection information, involvement of local community in decision making, professionalization in the working of local administration, extending the support of government in sponsoring the events, infrastructure development, tracking records of migrants with the help of local community to curb the crime rate, promotion and preservation of art, culture and heritage, involvement of NGOs, compliance of the rules can make tourism more beneficial in the development of local community.

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