Type of Submission
Refereed Article
Abstract
This paper explores liquidity effects following the global financial crises between 2007 and 2009 for 26 stocks listed on the Dow Jones Travel and Tourism Index. We find evidence of a sustained increase in the liquidity of the stocks as a result of the financial crises. The empirical findings are consistent with the information cost/liquidity hypothesis, which states that investors demand a lower premium for holding stocks with relatively more available information. Our results suggest that the travel and tourism industry is no longer considered a luxury item. On the contrary, it appears to be more of a necessity to stimulate business and happiness for firms and individuals, respectively, in times of financial turmoil.
DOI
https://doi.org/10.7275/tn8k-ck95
Recommended Citation
Gregoriou, Andros and Liasidou, Sotiroula
(2019)
"Liquidity Effects on Travel and Tourism Stocks following Global Financial Crises,"
Journal of Hospitality Financial Management: Vol. 27:
Iss.
2, Article 5.
DOI: https://doi.org/10.7275/tn8k-ck95
Available at:
https://scholarworks.umass.edu/jhfm/vol27/iss2/5
Included in
Corporate Finance Commons, Finance and Financial Management Commons, Food and Beverage Management Commons, Gaming and Casino Operations Management Commons, Real Estate Commons, Tourism and Travel Commons