The Vulnerability of Tourism Firms’ Stocks to the Terrorist Incidents

Dlawar Mahdi Hadi, Salih Katircioglu & Cahit Adaoglu (2020) The vulnerability of tourism firms’ stocks to the terrorist incidents, Current Issues in Tourism, 23:9, 1138-1152, DOI: 10.1080/13683500.2019.1592124

Posted: 14 Jan 2021

See all articles by Dlawar M. Hadi

Dlawar M. Hadi

Eastern Mediterranean University - Department of Banking and Finance

Salih Turan Katircioglu

Eastern Mediterranean University

Cahit Adaoglu

Eastern Mediterranean University - Department of Banking and Finance

Date Written: March 18, 2019

Abstract

This study investigated the effects of terrorist attacks on the stock performance of tourism, travel, and leisure industries. The major tourist countries have been selected for this purpose. The novelty of this research is that not only it focuses on the relationship between terrorism and tourism stock performance and volatility but also uses an event study to examine this relationship. The results of this study revealed the significant effects of terrorist attacks on tourism firms’ performance and stock volatility in France, Spain, Thailand, Turkey, the United Kingdom, and the United States, while no significant effects were obtained for China and Germany. The overall panel event study analysis as well as the event study for individual countries illustrated the considerable adverse effects of terrorist attacks on firms’ performance in tourism, travel, and leisure industries.

Keywords: tourism, travel, leisure, terrorism, stock performance

JEL Classification: G14, Z33, G11

Suggested Citation

Hadi, Dlawar M. and Katircioglu, Salih Turan and Adaoglu, Cahit, The Vulnerability of Tourism Firms’ Stocks to the Terrorist Incidents (March 18, 2019). Dlawar Mahdi Hadi, Salih Katircioglu & Cahit Adaoglu (2020) The vulnerability of tourism firms’ stocks to the terrorist incidents, Current Issues in Tourism, 23:9, 1138-1152, DOI: 10.1080/13683500.2019.1592124, Available at SSRN: https://ssrn.com/abstract=3726845

Dlawar M. Hadi (Contact Author)

Eastern Mediterranean University - Department of Banking and Finance ( email )

Gazimagusa, via Mersin-10
Turkey

Salih Turan Katircioglu

Eastern Mediterranean University ( email )

Gazimagusa, Via Mersin-10
Turkey

Cahit Adaoglu

Eastern Mediterranean University - Department of Banking and Finance ( email )

Famagusta North Cyprus, via Mersin-10
Turkey
+903926302116 (Phone)

HOME PAGE: http://www.emu.edu.tr

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