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Stock Prices and COVID-19 Stimulus Policies: Evidence From Tourism and Hospitality Industry

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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.

Keywords: COVID-19; ECONOMIC POLICY; FISCAL POLICY; MONETARY POLICY; PANDEMIC; STOCK MARKET

Document Type: Research Article

Affiliations: 1: Department of Accounting, College of Business and Economics, United Arab Emirates University (UAEU), Al Ain, United Arab Emirates 2: Department of Economics and Finance, College of Business and Economics, United Arab Emirates University (UAEU), Al Ain, United Arab Emirates 3: School of Economics, University of Nottingham Malaysia (UNM), Semenyih, Malaysia

Publication date: March 5, 2024

This article was made available online on July 10, 2023 as a Fast Track article with title: "STOCK PRICES AND COVID-19 STIMULUS POLICIES: EVIDENCE FROM TOURISM AND HOSPITALITY INDUSTRY".

More about this publication?
  • Established in 1996, Tourism Analysis is an interdisciplinary journal that provides a platform for exchanging ideas and research in tourism and related fields. The journal aims to publish articles that explore a broad range of research subjects, including, but not limited to, the social, economic, cultural, environmental, and psychological aspects of tourism, consumer behavior in tourism, sustainable and responsible tourism, and effective operations, marketing, and management.

    Tourism Analysis focuses on both theoretical and applied research and strives to promote innovative approaches to understanding the complex and dynamic nature of tourism, its stakeholders, businesses, and its effects on society. The journal welcomes articles on innovative research topics and methodologies beyond the traditional theory-testing sciences, such as robotics, computational sciences, and data analytics.

    Our primary goal is to contribute to the development and advancement of new knowledge in tourism while fostering critical reflections and debates on the radical changes and evolution in tourism among scholars, practitioners, policymakers, and other stakeholders.
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