The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets

Yan Liu; Xian Cheng; Stephen Shaoyi Liao; Feng Yang

doi:10.1016/j.najef.2022.101875

The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets

Yan Liu, Xian Cheng^*, Stephen Shaoyi Liao, Feng Yang

^*Corresponding author for this work

Department of Information Systems

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

30 Citations (Scopus)

Abstract

COVID-19 seriously affects the tourism and hospitality industry. In this study, we investigate the behavior of 40 tourism and hospitality stock market indices worldwide from two perspectives. First, empowered by the Granger causality test and network analysis, we test the spillover effects among these stock markets and find that the dynamics of interconnectedness network structures differ significantly in the pre-pandemic and in-pandemic periods. Second, we employ econometric models to explore how the influence of COVID-19 on these stock markets varies by considering the interconnectedness structure, the government response stringency index, and other country-level characteristics. We find that the interconnectedness structure significantly and robustly affects stock returns in the tourism and hospitality markets. Our investigation provides a better understanding of the impact of COVID-19 on tourism and hospitality industry.

Original language	English
Article number	101875
Journal	North American Journal of Economics and Finance
Volume	64
Online published	30 Dec 2022
DOIs	https://doi.org/10.1016/j.najef.2022.101875
Publication status	Published - Jan 2023

Funding

This study is supported by Research Grants Council of the Hong Kong Special Administrative Region, China (GRF11501520), the National Natural Science Foundation of China (NSFC71871151), Key Program for International S&T Cooperation Projects of China (No. kh2201037).

Research Keywords

COVID-19
Interconnectedness
Network
Spillover effects
Tourism and hospitality

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title = "The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets",

abstract = "COVID-19 seriously affects the tourism and hospitality industry. In this study, we investigate the behavior of 40 tourism and hospitality stock market indices worldwide from two perspectives. First, empowered by the Granger causality test and network analysis, we test the spillover effects among these stock markets and find that the dynamics of interconnectedness network structures differ significantly in the pre-pandemic and in-pandemic periods. Second, we employ econometric models to explore how the influence of COVID-19 on these stock markets varies by considering the interconnectedness structure, the government response stringency index, and other country-level characteristics. We find that the interconnectedness structure significantly and robustly affects stock returns in the tourism and hospitality markets. Our investigation provides a better understanding of the impact of COVID-19 on tourism and hospitality industry.",

keywords = "COVID-19, Interconnectedness, Network, Spillover effects, Tourism and hospitality",

author = "Yan Liu and Xian Cheng and Liao, {Stephen Shaoyi} and Feng Yang",

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journal = "North American Journal of Economics and Finance",

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T1 - The impact of COVID-19 on the tourism and hospitality Industry

T2 - Evidence from international stock markets

AU - Liu, Yan

AU - Cheng, Xian

AU - Liao, Stephen Shaoyi

AU - Yang, Feng

PY - 2023/1

Y1 - 2023/1

N2 - COVID-19 seriously affects the tourism and hospitality industry. In this study, we investigate the behavior of 40 tourism and hospitality stock market indices worldwide from two perspectives. First, empowered by the Granger causality test and network analysis, we test the spillover effects among these stock markets and find that the dynamics of interconnectedness network structures differ significantly in the pre-pandemic and in-pandemic periods. Second, we employ econometric models to explore how the influence of COVID-19 on these stock markets varies by considering the interconnectedness structure, the government response stringency index, and other country-level characteristics. We find that the interconnectedness structure significantly and robustly affects stock returns in the tourism and hospitality markets. Our investigation provides a better understanding of the impact of COVID-19 on tourism and hospitality industry.

AB - COVID-19 seriously affects the tourism and hospitality industry. In this study, we investigate the behavior of 40 tourism and hospitality stock market indices worldwide from two perspectives. First, empowered by the Granger causality test and network analysis, we test the spillover effects among these stock markets and find that the dynamics of interconnectedness network structures differ significantly in the pre-pandemic and in-pandemic periods. Second, we employ econometric models to explore how the influence of COVID-19 on these stock markets varies by considering the interconnectedness structure, the government response stringency index, and other country-level characteristics. We find that the interconnectedness structure significantly and robustly affects stock returns in the tourism and hospitality markets. Our investigation provides a better understanding of the impact of COVID-19 on tourism and hospitality industry.

KW - COVID-19

KW - Interconnectedness

KW - Network

KW - Spillover effects

KW - Tourism and hospitality

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U2 - 10.1016/j.najef.2022.101875

DO - 10.1016/j.najef.2022.101875

M3 - RGC 21 - Publication in refereed journal

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VL - 64

JO - North American Journal of Economics and Finance

JF - North American Journal of Economics and Finance

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ER -

The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets

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Research Keywords

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