ABSTRACT
Using the event study method, we examine the impacts of the Russia-Ukraine war 2022 on the global tourism sector stocks. The findings suggest that the impact is different for firms in different markets. While abnormal returns of firms in Europe, the Middle East, and Africa, as well as the Pacific, are significantly negative on the event day, those in the Americas and Asia are insignificant. The cross-sectional analysis reveals that some country- and firm-specific variables significantly impact the cumulative abnormal returns.
Acknowledgements
The authors are thankful to the Editors and the three anonymous Reviewers whose constructive 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).
Notes
1 Americas include Brazil, Canada, Mexico, and the United States.
3 Boubaker et al. (Citation2022), and Boungou and Yatié (Citation2022) evidence heterogeneous effects of the Russia-Ukraine war on global stock markets.
4 Some significant studies examine the association between tourism and civil war (Bandara, Citation1997), economic policy uncertainty (Demir & Ersan, Citation2018; Tiwari et al., Citation2019), terrorist attack (Hadi et al., Citation2020; Shahzad et al., Citation2019, Citation2020; Shahzad & Qin, Citation2019), NATO bombing (Tkalec & Žilić, Citation2021), geopolitical risk (Demir et al., Citation2019, Citation2020; Demiralay & Kilincarslan, Citation2019; Gozgor et al., Citation2022; Hailemariam & Ivanovski, Citation2021; Tiwari et al., Citation2019), global volatility and uncertainty factors (Hadi et al., Citation2022; Yan et al., Citation2022).
5 To estimate the alpha and beta estimates of the Ordinary Least Squares regression, we regress the estimation period returns of the sample firms with the leading benchmark index of the nation to which the firm belongs (Pandey & Kumari, Citation2021). We provide the detailed methodology in Supplementary S1.
6 For example, Turkey, Finland, China, Estonia, Germany, Italy, Poland, Spain, and Thailand are among the most visited countries by Russian tourists, raising concern that more the dependence of these tourist markets on Russia, the more vulnerable these markets may be to the Russia-Ukraine war.
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