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Will the Aviation Industry Have a Bright Future after the COVID-19 Outbreak? Evidence from Chinese Airport Shipping Sector

Author

Listed:
  • Jingxuan Liu

    (Business School, University of Sydney, Sydney, NSW 2006, Australia)

  • Ping Qiao

    (School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China)

  • Jian Ding

    (College of Economics and Management, Tianjin University of Science and Technology, Tianjin 300547, China)

  • Luke Hankinson

    (Business School, University of Sydney, Sydney, NSW 2006, Australia)

  • Elodie H. Harriman

    (Business School, University of Sydney, Sydney, NSW 2006, Australia)

  • Edward M. Schiller

    (Business School, University of Sydney, Sydney, NSW 2006, Australia)

  • Ieva Ramanauskaite

    (Business School, University of Sydney, Sydney, NSW 2006, Australia)

  • Haowei Zhang

    (School of Chemical and Biomolecular Engineering, University of Sydney, Sydney, NSW 2006, Australia)

Abstract

Due to the lockdown regulations worldwide during the COVID-19 pandemic, the global aviation industry has been severely hit. This study focuses on the volatility estimation of stock indexes in the Chinese Airport Shipping Set (ASS) at industry-enterprise levels and identifies possible business behavior that may cause fluctuating differences. Depending on the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model, text mining method and Word Cloud Views, results show that (1) the holistic volatility of Airport Shipping Set Index (ASSI) increases relative to the pre-COVID period; (2) volatility of airport stocks has crucial differences, while the volatility of shipping stocks is similar; (3) there are different responses to the pandemic between Shenzhen Airport and Shanghai Airport shown in their semiannual financial reports. Compared to the latter, the former had a more positive attitude and took various measures to mitigate risks, providing evidence of the volatility differences between firms.

Suggested Citation

  • Jingxuan Liu & Ping Qiao & Jian Ding & Luke Hankinson & Elodie H. Harriman & Edward M. Schiller & Ieva Ramanauskaite & Haowei Zhang, 2020. "Will the Aviation Industry Have a Bright Future after the COVID-19 Outbreak? Evidence from Chinese Airport Shipping Sector," JRFM, MDPI, vol. 13(11), pages 1-14, November.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:11:p:276-:d:443435
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    1. Cui, Qiang & Hu, Yu-xin & Yu, Li-ting, 2022. "Can the aviation industry achieve carbon emission reduction and revenue growth simultaneously under the CNG2020 strategy? An empirical study with 25 benchmarking airlines," Energy, Elsevier, vol. 245(C).
    2. Shutter Zor & Jingru Chen & Jietie Ailimujiang & Fayao Wang, 2023. "Follow Suit: Imitative governance, resource inclination, and regional innovation efficiency," Review of Economic Assessment, Anser Press, vol. 2(1), pages 25-39, April.
    3. Melnyk Mariana & Leshchukh Iryna & Baranova Viktoriia, 2021. "The Effect of the Covid-19 Pandemic and Quarantine Restrictions on Business and Socio-Economic Dynamics in Ukraine," Management Theory and Studies for Rural Business and Infrastructure Development, Sciendo, vol. 43(3), pages 415-429, September.
    4. Raghu Raman & Ricardo Vinuesa & Prema Nedungadi, 2021. "Bibliometric Analysis of SARS, MERS, and COVID-19 Studies from India and Connection to Sustainable Development Goals," Sustainability, MDPI, vol. 13(14), pages 1-20, July.

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