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COVID-19, government measures and hospitality industry performance

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  • David Yechiam Aharon
  • Arie Jacobi
  • Eli Cohen
  • Joseph Tzur
  • Mahmoud Qadan

Abstract

This study explores the interplay between public measures adopted by the U.S. government to combat COVID-19 and the performance of the American hospitality industry. The recent global pandemic is a natural experiment for exploring the role of government interventions and their direct impact on hospitality stock returns in the U.S. financial market. Overall, our findings show that most of the government interventions were associated with a negative response in the returns of the hospitality industry, a response that became more negative as the COVID-19 pandemic evolved. Similar patterns were also detected for other industries such as entertainment and transportation that are closely related to hospitality. The findings we document are fundamental to understanding the trends and fluctuations in hospitality stocks in the current crisis and any similar crisis in the future.

Suggested Citation

  • David Yechiam Aharon & Arie Jacobi & Eli Cohen & Joseph Tzur & Mahmoud Qadan, 2021. "COVID-19, government measures and hospitality industry performance," PLOS ONE, Public Library of Science, vol. 16(8), pages 1-23, August.
    • Handle: RePEc:plo:pone00:0255819
    DOI: 10.1371/journal.pone.0255819
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    References listed on IDEAS

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    1. Al-Awadhi, Abdullah M. & Alsaifi, Khaled & Al-Awadhi, Ahmad & Alhammadi, Salah, 2020. "Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
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    Cited by:

    1. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    2. Niall O’Donnell & Darren Shannon & Barry Sheehan, 2024. "The impact of monetary policy interventions on banking sector stocks: an empirical investigation of the COVID-19 crisis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-41, December.
    3. Corbet, Shaen & Hou, Yang & Hu, Yang & Oxley, Les, 2022. "Did COVID-19 tourism sector supports alleviate investor fear?," Annals of Tourism Research, Elsevier, vol. 95(C).
    4. Králiková Andrea & Ryglová Kateřina & Zámečník Silvie, 2022. "Impact of the COVID-19 pandemic on the hotel strategy: Introductory assessment," Czech Journal of Tourism, Sciendo, vol. 11(1-2), pages 1-13, December.
    5. Chang, Chiu-Lan & Cai, Qingyun, 2023. "Stock return anomalies identification during the Covid-19 with the application of a grouped multiple comparison procedure," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 168-183.

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