The impact of geopolitical risks on travel and leisure stocks
By Sercan Demiralay, Erhan Kilincarslan. 2019
127 citations recorded by the source corpus.
Abstract The impact of geopolitical risks on tourism has not received scholarly attention in the existing literature. Previous studies focus on the effects of terrorism, which is a subset of geopolitical risks. Our paper fills this gap and contributes to the literature by analyzing the vulnerability of four regional Travel and Leisure (T&L) industry stock indices to geopolitical risks. Employing traditional and quantile regression techniques, our results suggest a greater sensitivity of T&L stock returns to geopolitical risks at times the industry performs poor, except for Asia & Pacific index that is the most resilient to geopolitical events. We find that the negative effects of geopolitical risks are mostly driven by the threat of adverse geopolitical events only during period of falling T&L stock prices. However, the realization of adverse geopolitical events significantly influences T&L stocks at all times. The results provide potential insights and implications for investors and tourism stakeholders.
Subfields: Economics and Econometrics, Public Health, Environmental and Occupational Health, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/fb150d0cb70b0c144911f3a3488206a60bc7bb91
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Citations in the corpus
- How oil prices, gold prices, uncertainty and risk impact Islamic and conventional stocks? Empirical evidence from QARDL technique (2020, background): “This significant impact of GPR on stocks is confirmed by Demiralay & Kilincarslan (2019).”