Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry
ABSTRACTThis paper examines the short-term market reaction of European tourism and hospitality industry to the beginning of the military conflict between Russia and Ukraine (24 February 2022). Using an event study, for a sample of 165 listed firms, we observe a negative and statistically significant...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2023.2261756 |
| _version_ | 1797404461774143488 |
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| author | António Miguel Martins Pedro Correia Susana Cró |
| author_facet | António Miguel Martins Pedro Correia Susana Cró |
| author_sort | António Miguel Martins |
| collection | DOAJ |
| description | ABSTRACTThis paper examines the short-term market reaction of European tourism and hospitality industry to the beginning of the military conflict between Russia and Ukraine (24 February 2022). Using an event study, for a sample of 165 listed firms, we observe a negative and statistically significant stock price reaction at and around the beginning of the military conflict between Russia and Ukraine. These results are consistent with investor sentiment hypothesis and asset-pricing perspective. These reactions are reinforced or mitigated by firm-specific characteristics such as liquidity, size, profitability, and institutional ownership. Finally, we find that listed firms located in: (i) countries in which Russia and Ukraine are the largest source of inbound foreign tourists, and (ii) countries formerly occupied by the Soviet Union and/or that share a common border with Russia, tend to show more negative abnormal returns. |
| first_indexed | 2024-03-09T02:55:19Z |
| format | Article |
| id | doaj.art-a534504e42bb476492cfbce25efbca97 |
| institution | Directory Open Access Journal |
| issn | 1514-0326 1667-6726 |
| language | English |
| last_indexed | 2024-03-09T02:55:19Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj.art-a534504e42bb476492cfbce25efbca972023-12-05T07:07:33ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262023-12-0126110.1080/15140326.2023.2261756Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industryAntónio Miguel Martins0Pedro Correia1Susana Cró2Faculty of Social Sciences, University of Madeira, Funchal, PortugalDepartment of Management and Economics, Universidade da Madeira, Funchal, PortugalSchool of Social Sciences, CEFAGE-UE and University of Évora, Évora, PortugalABSTRACTThis paper examines the short-term market reaction of European tourism and hospitality industry to the beginning of the military conflict between Russia and Ukraine (24 February 2022). Using an event study, for a sample of 165 listed firms, we observe a negative and statistically significant stock price reaction at and around the beginning of the military conflict between Russia and Ukraine. These results are consistent with investor sentiment hypothesis and asset-pricing perspective. These reactions are reinforced or mitigated by firm-specific characteristics such as liquidity, size, profitability, and institutional ownership. Finally, we find that listed firms located in: (i) countries in which Russia and Ukraine are the largest source of inbound foreign tourists, and (ii) countries formerly occupied by the Soviet Union and/or that share a common border with Russia, tend to show more negative abnormal returns.https://www.tandfonline.com/doi/10.1080/15140326.2023.2261756Wartourismstock returnsevent study |
| spellingShingle | António Miguel Martins Pedro Correia Susana Cró Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry Journal of Applied Economics War tourism stock returns event study |
| title | Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry |
| title_full | Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry |
| title_fullStr | Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry |
| title_full_unstemmed | Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry |
| title_short | Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry |
| title_sort | stock market reaction to the military conflict between russia and ukraine an event study for the european tourism and hospitality industry |
| topic | War tourism stock returns event study |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2023.2261756 |
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