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.

A quantile regression approach to evaluate the relative impact of global and local factors on the MENA stock markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Slah Bahloul ◽  
Nawel Ben Amor
Keyword(s):  
Stock Market ◽  
Quantile Regression ◽  
Stock Returns ◽  
Stock Markets ◽  
Financial Integration ◽  
Ordinary Least Squares ◽  
Market Returns ◽  
Stock Market Returns ◽  
Content Type ◽  
The Impact

PurposeThis paper investigates the relative importance of local macroeconomic and global factors in the explanation of twelve MENA (Middle East and North Africa) stock market returns across the different quantiles in order to determine their degree of international financial integration.Design/methodology/approachThe authors use both ordinary least squares and quantile regressions from January 2007 to January 2018. Quantile regression permits to know how the effects of explanatory variables vary across the different states of the market.FindingsThe results of this paper indicate that the impact of local macroeconomic and global factors differs across the quantiles and markets. Generally, there are wide ranges in degree of international integration and most of MENA stock markets appear to be weakly integrated. This reveals that the portfolio diversification within the stock markets in this region is still beneficial.Originality/valueThis paper is original for two reasons. First, it emphasizes, over a fairly long period, the impact of a large number of macroeconomic and global variables on the MENA stock market returns. Second, it examines if the relative effects of these factors on MENA stock returns vary or not across the market states and MENA countries.

scholarly journals Are Kuwaiti Stock Returns Affected by Fluctuations in Oil Prices?

2020 ◽  
Vol 11 (6) ◽  
pp. 1
Author(s):  
Salem Alshihab ◽  
Nayef AlShammari
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Oil Prices ◽  
Market Returns ◽  
Macroeconomic Factors ◽  
Stock Market Returns ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Adf Test

This paper examines the impact of fluctuations in the price of oil on Kuwaiti stock market returns for the month-to-month period of 2000 to 2020. The Augmented Dickey-Fuller (ADF) test for stationarity, the error correction model (ECM), and various cointegration test techniques were used to examine the estimated model. In an oil-based economy like Kuwait, the exposure to oil prices seems to affect the performance of the country’s stock market. Our main findings related to the long run showed that the price of oil is cointegrated with stock market returns. Interestingly, our ECM examination confirmed that changes in Kuwaiti stock market returns are only affected by oil price fluctuations in the short run. Further strategies are needed to better stabilize Kuwait’s capital market. This equilibrium can be achieved by pursuing more stability in other macroeconomic factors and providing a solid legal independence for the country’s financial market.

Rational–Irrational Investor Sentiments and Emerging Stock Market Returns: A Comparison from Turkey

2017 ◽  
Vol 16 (3) ◽  
pp. 219-245 ◽  
Author(s):  
Sidika Gulfem Bayram
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Risk Premium ◽  
Stock Exchange ◽  
Jel Classification ◽  
Market Returns ◽  
Dynamic Interactions ◽  
Stock Market Returns ◽  
Dynamic Relationship ◽  
The Impact

This study investigates the dynamic relationship between rational and irrational consumer-business sentiments and stock returns in an emerging stock market, Turkey. Consumer and business sentiments are divided into two components: rational and irrational sentiments. Then, the dynamic interactions and the impact of the sentiments on stock returns are examined. The fundamental economic variables used in the study consist of business conditions, economic risk premium, country risk, exchange rate risk, country growth rate, inflation rate, and terms of trade. The results show that Istanbul Stock Exchange (ISE)-100 index returns are positively and significantly affected by the rational sentiments of both consumers and businesses. JEL Classification: G02, G12, G150

scholarly journals The effect of cyber-attacks on stock returns

2018 ◽  
Vol 15 ◽  
pp. 70-83 ◽  
Author(s):  
Maria Cristina Arcuri ◽  
Marina Brogi ◽  
Gino Gandolfi
Keyword(s):  
Stock Returns ◽  
Insider Trading ◽  
Market Value ◽  
Cyber Attacks ◽  
Negative Effects ◽  
Market Returns ◽  
Security Breaches ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

A widely debated issue in recent years is cybercrime. Breaches in the security of accessibility, integrity and confidentiality of information involve potentially high explicit and implicit costs for firms. This paper investigates the impact of information security breaches on stock returns. Using event-study methodology, the study provides empirical evidence on the effect of announcements of cyber-attacks on the market value of firms from 1995 to 2015. Results show that substantial negative market returns occur following announcements of cyber-attacks. Financial entities often suffer greater negative effects than other companies and non-confidential cyber-attacks are the most dangerous, especially for the financial sector. Overall findings seem to show a link between cybercrime and insider trading

Does Parasocial Breakup Affect the Stock Market Returns?

2019 ◽  
pp. 70-87
Author(s):  
İbrahim Bozkurt ◽  
Mercan Hatipoğlu
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Negative Mood ◽  
Market Returns ◽  
Stock Market Returns ◽  
Macroeconomic Variables ◽  
The Impact ◽  
Robust Evidence

This chapter analyzes the impact of parasocial breakup on the stock returns in Borsa Istanbul as an emerging stock market. In this study, 129 Turkish TV series finales, broadcast between 2005 and 2015, are employed as a negative mood proxy. In line with the purpose of this chapter, GARCH-M model is used to obtain a more efficient parameter and alternative mood proxy dummies and other macroeconomic variables are incorporated into the analyses to examine the robustness of the effect of parasocial breakup on stock market returns. The analysis presents robust evidence that the negative mood increases the stock market returns. It also found that the effect of parasocial breakup on returns depends on the types of TV series and the channels they are broadcast on.

scholarly journals DOES ELECTION IMPACT ON STOCK MARKET RETURNS IN BANGLADESH?

2021 ◽  
pp. 1-18
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Abnormal Returns ◽  
Descriptive Statistics ◽  
Market Returns ◽  
Stock Market Returns ◽  
Market Participants ◽  
Before And After ◽  
The Common ◽  
The Impact

This paper investigates the impact of parliamentary general election on the stock market returns by considering the previous fifteen days and the after fifteen days of each of six elections in Bangladesh held between 1991 and 2018. The study analyzed the election effect on stock returns through considering both abnormal returns by choosing 20 stocks as a proxy of portfolio motive of the investors and the broad index returns as a measurement of whole market scenario. The study employed descriptive statistics, t-tests, and F-tests to understand the impact of election by gauging the changes in return series. Descriptive statistics showed very high differences in means, standard deviations, and volatilities. Paired t-tests showed significant differences between the means and F-tests showed significant differences between the variances of the returns during before and after days of these elections. The results were the same for abnormal returns and broad index returns. The impacts of individual election on the returns were also found as the same in most cases. The study has found some very useful insights part of which can benefit the policymakers to reform the policies. The common investors and the financial market participants can also make better investment plan.

scholarly journals The Measurement Method of Investor Sentiment and Its Relationship with Stock Market

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Jiangshan Hu ◽  
Yunyun Sui ◽  
Fang Ma
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Investor Sentiment ◽  
Principal Component ◽  
Market Volatility ◽  
Response Analysis ◽  
Stock Market Volatility ◽  
Market Returns ◽  
Stock Market Returns ◽  
The Impact

Investor sentiment is a hot topic in behavioral finance. How to measure investor sentiment? Is the influence of investor sentiment on the stock market symmetrical? That is all we need to think about. Therefore, this paper firstly selects five emotional proxy variables and constructs an investor sentiment composite index by principal component analysis. Secondly, the MS-VAR model is employed to study the dynamic relationship among investor sentiment, stock market returns, and volatility. Using the model MSIH (2)-VAR (2), we found that the relationship among the investor sentiment, stock returns, and volatility is different in different regimes. The results of orthogonal cumulative impulse response analysis showed that the shock to investor sentiment has a significant impact on stock market returns, and this impact in the bullish stock market is significantly higher than in the bearish stock market. The impact of the shock to stock market returns on investor sentiment and stock market volatility is relatively significant. The shock to stock market volatility has significant effects on the stock market returns. Overall, the influence of investor sentiment on the stock market is asymmetric; that is, in different regimes of the stock market, the impact of investor sentiment on the stock market is different. Realizing this, investors can better understand and grasp the market, guiding their own investment behavior. Other researchers can also further study the measurement of investor sentiment on this basis to better guide investors’ behavior.

scholarly journals EVA-based financial performance measurement: An evidential study of selected emerging country companies

2020 ◽  
Vol 18 (1) ◽  
pp. 179-195
Author(s):  
Kushagra Goel ◽  
Sunny Oswal
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Information Content ◽  
Value Added ◽  
Market Value ◽  
Market Returns ◽  
Stock Market Returns ◽  
Financial Variables ◽  
Incremental Information ◽  
Market Value Added

This paper aims at examining the claims that economic value added (EVA) is a superior performance indicator than the traditional performance indicators like ROCE, NOPAT, EPS, OCF, and RONW. This study investigates the relative explanatory power of EVA measure of non-financial Indian companies with respect to two measures, market value added and stock returns used as a proxy for shareholder value. The analysis is performed for a sample of 46 Indian companies for the period of 2009-2019. The panel data regression models are employed to test the relative and incremental information content of EVA and other audited accounting-based measures. Relative information content tests reveal that NOPAT and OCF appear to be more value-relevant than EVA in explaining the market value of Indian companies. It was also found that ROA is more closely associated with stock market returns than EVA. Additionally, incremental information content tests suggest that EVA underperforms in comparison with NOPAT and OCF in analysing market value added. It was also found that EVA does not add any incremental information content to that provided by ROA and ROE accounting measures in explaining stock returns. Overall, the findings do not support the purported superiority of EVA to established accounting variables in association with market value or stock market returns of the firm. It is concluded that non-financial variables such as research and development, customer satisfaction, internal business process efficiency, innovation, employee satisfaction, CSR, product quality apart from financial variables drive market value and should be considered by investors in developing their investment strategies

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