STOCK PRICES AND COVID-19 STIMULUS POLICIES: EVIDENCE FROM TOURISM AND HOSPITALITY INDUSTRY

Research output: Contribution to journalArticlepeer-review

Abstract

This study examines the impact of economic stimulus policies on tourism-related firms’ stock prices, after movement restriction announcements, and differences in the relationships between economic policy responses and stock prices for large firms vis-à-vis small firms. Using a cross-section data of 888 firms from 56 countries listed on several stock exchanges, we find a positive and significant association between the COVID-19 economic stimulus index and 1- and 2-week average changes in tourism firms’ stock prices after movement restriction announcements. Tourism firms’ stock prices responded favorably to the introduction of macrofinancial packages and monetary policies. This study complements the literature on stock market reactions during the pandemic and contributes to the growing body of literature examining its overall effect.

Original languageEnglish
Pages (from-to)125-148
Number of pages24
JournalTourism Analysis
Volume29
Issue number1
DOIs
Publication statusPublished - 2024

Keywords

  • COVID-19
  • Economic policy
  • Fiscal policy
  • Monetary policy
  • Pandemic
  • Stock market

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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