An Event Study Approach to Analyse the Impact of Novel Coronavirus Disease (Covid-19) on Indian Hotel & Tourism Stocks Performance
Keywords:Covid 19, Stock Returns, Event Study, Negative Returns
Covid 19 or the Novel Corona Virus outbreak in 2020 has disrupted the world and Indian economy. Tourism industry has suffered the most due to this outbreak. The hotel industry stocks have experience an average fall of twenty three percent within a month of the Covid 19 outbreak. With the help of event-study approach, an attempt has been made to analyse the effect of Covid 19 on Indian hotel stock price movements. Six publicly traded hotel and tourism companies experience a steep fall in their stock prices during the Covid 19 outbreak period. On and after the day the World Health Organisation declared Covid 19 a pandemic, Indian hotel stocks exhibited significant negative cumulative mean abnormal returns, indicating a significant impact of the Covid 19 outbreak on hotel stock performance. Empirical finding can enable Businesses to prepare themselves for alternate uses like isolation wards and save themselves from economic plight.