Lockdown, unlock, stock returns, and firm-specific characteristics: the Indian tourism sector during the Covid-19 outbreak

ABSTRACT

Using the event study methodology, we find that the stock returns of the Indian tourism sector reacted differently to the announcements of nationwide lockdown and the Unlock 1.0. Using the cross-sectional regression, we find liquidity, volatility, solvency, and size as the primary drivers of CARs during the event windows. The findings will empower the decision-making abilities of the investors and firm managers.

KEYWORDS:

• Tourism industry
• covid-19
• event study
• firm-level variables

Acknowledgement

The authors are thankful to the Editors and the anonymous Reviewers whose valuable suggestions improved the quality of the manuscript. The authors are also thankful to the Production editor Thaheer Hussain and his production team for the support all through the production of the manuscript.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Additional information

Notes on contributors

Dharen Kumar Pandey

Dharen Kumar Pandey is an Assistant Professor in the P. G. Department of Commerce, Magadh University, Bodh Gaya, Bihar. He has ten years of industry and teaching experience. His research interests are financial markets, financial econometrics, market efficiency, etc. He has published several research papers in various reputed journals, including the International Review of Economics and Finance, the International Journal of Financial Markets and Derivatives, the Review of Finance and Banking, the Indian Journal of Commerce. He also holds the post of Honorary Secretary of the Indian Accounting Association, Patna Branch, and the Member of the Executive Committee, Indian Accounting Association.

Rahul Kumar

Rahul Kumar is a Doctoral Fellow in Accounting and Finance at the Indian Institute of Management, Ranchi. His research interests lie in Corporate Finance, Derivatives, Investment Management, Corporate Governance, etc.