The impact of the COVID-19 pandemic on travel cryptocurrency and stock market performances: an event-study approach

【Author】 Kim, Hwang

【Source】JOURNAL OF HOSPITALITY AND TOURISM TECHNOLOGY

【影响因子】5.576

【Abstract】PurposeThis paper aims to evaluate the impact of the COVID-19 pandemic on the performance of travel cryptocurrency and stock markets over a long period during the pandemic. Design/methodology/approachA generalized autoregressive conditional heteroskedasticity model was developed for 6 travel cryptocurrencies and the top 10 hotel, 7 airline and 26 restaurant stocks listed on the NASDAQ stock exchange. An event-study approach was applied to the emergence of the novel coronavirus and its variant, Omicron. Additionally, abnormal returns of the respective assets in response to such events were estimated. FindingsResults indicated that the travel cryptocurrency market did not respond to the early stage of the pandemic, but NASDAQ hotel, restaurant and airline stocks revealed abnormal negative returns when the pandemic manifested in the USA. Upon the official US declaration of a pandemic, both cryptocurrencies and tourism stocks showed abnormal negative returns, but these were considerably greater among stocks than cryptocurrencies. Conversely, in response to the Omicron variant, only hotel, restaurant and airline stocks showed abnormal negative returns. Practical implicationsThese results imply that travel cryptocurrencies are a financial instrument independent of hotel, restaurant or airline stocks. Thus, adopting travel cryptocurrencies may help investors and businesses diversify risk during long-duration crises such as COVID-19. Originality/valueTo the best of the author's knowledge, this paper is the first empirical study to investigate the impact of the COVID-19 pandemic on the recently emerging travel cryptocurrency market using an event-study approach to investigate how it differs from tourism stock performances.

【Keywords】Airline stocks; COVID-19; Event study; Hotel stocks; Restaurant stocks; Time series analysis; Travel token; ??; COVID-19; ????; ??; ??; ??????; ????

【发表时间】

【收录时间】2023-02-19

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-数字货币