Impact of the Covid-19 Outbreak on Stocks in Hong Kong, Macau and North America - An Empirical Analysis Based on the Hospitality Industry
DOI:
https://doi.org/10.54691/bcpbm.v30i.2501Keywords:
Covid-19; hospitality industry; event study.Abstract
The WHO declared the Covid-19 outbreak a "public health emergency" in early 2020, deeming it a serious threat to the global economy. This study builds industry indices for North America and Hong Kong and Macau using weighted averages of nine well-known listed companies in North America and fourteen companies in Hong Kong and Macau with Asian representation. Based on the event study method, the impact of the Covid-19 epidemic on the stock returns of listed companies in the global hospitality industry was examined. In terms of empirical results, Covid-19 has a significant positive impact on Hong Kong and Macau hospitality industry returns, whereas Covid-19 has a significant negative impact on North American hospitality industry returns. As a consequence, the magnitude of the decline can be attributed primarily to the measures taken to control the Covid-19 pandemic. In the face of emergencies, regulators and investors can make informed decisions by studying the impact of the epidemic on capital markets.
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