scholarly journals The Effects of Passenger Risk Perception During the COVID-19 Pandemic on Airline Industry: Evidence From the United States Stock Market

2022 ◽  
Vol 12 ◽  
Author(s):  
Zhou Lu ◽  
Linchuang Zhu ◽  
Zhenhui Li ◽  
Xueping Liang ◽  
Yuan Zhang
Keyword(s):  
United States ◽  
Structural Change ◽  
Risk Perception ◽  
Stock Market ◽  
Airline Industry ◽  
Market Performance ◽  
The United States ◽  
Stock Market Performance ◽  
Significant Difference ◽  
The Impact

The COVID-19 pandemic has caused a dramatic reshaping of passenger risk perception for airline industry. The sharp increase in risk aversion by air passenger has caused a disastrous impact on the tourism service industry, particularly airline industry. Although the existing literature has provided a lot of studies on the impact of the pandemic on travel industry, there are very few studies discussing the impact of change in passenger risk perception on the stock market performance of airline industry. This study considers two types of airline companies, full-service and low-cost. In order to overcome the traditional problem of the Chow test, Quandt–Andrews test is used to identify structural change points during the pandemic in the stock prices of United States airline companies. The result shows that an industry-wide structural change in the stock market performance indeed is found to take place during the pandemic for United States airline companies. Meanwhile, no significant difference is found in the structural change date between the two types of airline companies. The selected airline companies are found to be clustered toward the end of 2020 (November and December) in their structural change dates. Although the strike of the COVID-19 pandemic on airline industry has proven to be widespread and profound, our investigation implies that air passengers have gradually adapted to the new normal of travel activities at some level and partly rebuild their sense of safety under the strict epidemic-control measures.

scholarly journals Monetary-Fiscal policies and stock market performance: Evidence from linear ARDL framework

2021 ◽  
Vol 5 (4) ◽  
pp. 69-80
Author(s):  
Aref Emamian ◽  
Nur Syazwani Mazlan
Keyword(s):  
United States ◽  
Stock Market ◽  
Market Performance ◽  
The United States ◽  
Tax Revenue ◽  
Fiscal Policies ◽  
Long Run ◽  
Stock Market Performance ◽  
The Us ◽  
Short Run

Objective – To explore the impacts of monetary and fiscal policies, the appropriateness of both policies and how the stock market is affected by their adoption and implementation in the United States (US). Hence, this study aims to determine the short and long run relationships between monetary and fiscal policies and stock market performance as well as establish potential factors and policies contributing to the highs and lows. Methodology/Technique – We use autoregressive distribution lag (ARDL) developed by Pesaran et al. (2001) to achieve the objective. In this study, annual time series data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, was used. Findings – The results show that both policies play a significant role in the stock market. We find a significant positive effect of real gross domestic product (RGDP) and the interest rate on the US stock market in the long run and significant negative relationship effect of the consumer price index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Novelty – As the US stock market heavily depends on the Tax Revenue in the short run, any changes in TR can impact on the US stock market considerably. Thus, shareholders can benefit from these results when they look at macroeconomic data in order to enhance their investment strategy. Type of Paper: Empirical. JEL Classification: E52; E62; G18 Keywords: ARDL; Monetary Policy; Fiscal Policy; The Stock Market in The United States. Reference to this paper should be made as follows: Emamian, A; Mazlan, N.S. 2021. Monetary-Fiscal policies and stock market performance: Evidence from linear ARDL framework, Journal of Business and Economics Review, 5(4), 69–80. https://doi.org/10.35609/jber.2021.5.4(7)

The Impact of Monetary and Fiscal Policies on the Stock Market in the United States (U.S); Evidence from Linear ARDL Framework

2020 ◽  
Vol 11 (1) ◽  
pp. 132-132
Author(s):  
Aref Emamian
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Fiscal Policies ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Impact

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

scholarly journals Pandemic and Indonesia Stock Market Performance

2021 ◽  
Vol 2 (4) ◽  
pp. 254-262
Author(s):  
Intan Surya Lesmana ◽  
Siti Saadah
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Market Performance ◽  
Government Policies ◽  
Likelihood Method ◽  
Symmetric Model ◽  
Asymmetric Model ◽  
Government Response ◽  
Stock Market Performance ◽  
The Impact

This study aims to analyze the impact of the COVID-19 pandemic on Indonesia’s stock market performance. Considering the characteristics of daily stock return data that shows the characteristics of volatility clustering, the analytical method used is to develop a heteroscedastic model specification whose parameters are estimated using the maximum likelihood method. Based on data from March 2020 to January 2021, this study finds that the Exponential-GARCH asymmetric model is the best model compared to the Standard-GARCH symmetric model or the asymmetric Threshold-GARCH model. The inference analysis conducted on the Exponential-GARCH asymmetric model in this study shows that the stock market's performance that is significantly affected by this pandemic is the volatility of its returns. Stock price volatility is one of the important variables in stock market performance. This study produces empirical findings that government policies on social restrictions contribute significantly to suppressing stock market volatility. As for government policies in mitigating the risk of the spread of the epidemic, in this study, it is measured through a stringency index. This index was released by the Oxford COVID-19 Government Response Tracker (OxCGRT) which monitors the government's response to the coronavirus in 160 countries and is a parameter that evaluates the policies taken by a country's government based on nine metrics. This index does not measure the effectiveness of a country's government response, but only the level of tightness. However, the results of the tests carried out in this study did not find a significant impact of pandemic indicators, the number of cases, and the number of daily deaths related to COVID-19 on stock returns.

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