National and Transnational Impacts of Terror on Hotel Stock Prices

This study aims to explore the sensitivity of hotel stock prices to national and transnational terrorist incidents that occur at the world’s top five tourist destinations. Event study analysis and the generalized sign test are the estimation techniques used in this study. Overall, hotel stocks were...

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Main Authors: Dlawar M. Hadi, Farman M. Ahmed
Format: Article
Language:English
Published: Erbil Polytechnic University 2020-06-01
Series:Polytechnic Journal
Subjects:
Online Access:https://polytechnic-journal.epu.edu.iq/home/vol10/iss1/27
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author Dlawar M. Hadi
Farman M. Ahmed
author_facet Dlawar M. Hadi
Farman M. Ahmed
author_sort Dlawar M. Hadi
collection DOAJ
description This study aims to explore the sensitivity of hotel stock prices to national and transnational terrorist incidents that occur at the world’s top five tourist destinations. Event study analysis and the generalized sign test are the estimation techniques used in this study. Overall, hotel stocks were found to react differently to terrorist activities. U.S. hotel stocks were the most affected, and French hotel stocks were the least affected by domestic terrorist attacks. However, U.K. hotel stocks were the most influenced and Thai hotel stocks were the least influenced by transnational terrorist incidents. Based on the overall findings, several diversification, hedging, and speculation strategies are proposed for mitigating the effects of these influences to financial market stakeholders and hotel managers. This study recommends further studies to be conducted including various sectors to reveal how different sectors react to terrorist activities.
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institution Kabale University
issn 2707-7799
language English
publishDate 2020-06-01
publisher Erbil Polytechnic University
record_format Article
series Polytechnic Journal
spelling doaj-art-e31a853cd5814447b3e26c16d2b735172025-08-20T03:25:15ZengErbil Polytechnic UniversityPolytechnic Journal2707-77992020-06-01101163169https://doi.org/10.25156/ptj.v10n1y2020.pp163-169National and Transnational Impacts of Terror on Hotel Stock PricesDlawar M. Hadi0Farman M. Ahmed1Department of Accounting, College of Business, Komar University of Science and Technology, Sulaymania, Kurdistan Region, Iraq, Department of Banking and Finance, College of Business Economy, Eastern Mediterranean University, Famagusta, North CyprusThis study aims to explore the sensitivity of hotel stock prices to national and transnational terrorist incidents that occur at the world’s top five tourist destinations. Event study analysis and the generalized sign test are the estimation techniques used in this study. Overall, hotel stocks were found to react differently to terrorist activities. U.S. hotel stocks were the most affected, and French hotel stocks were the least affected by domestic terrorist attacks. However, U.K. hotel stocks were the most influenced and Thai hotel stocks were the least influenced by transnational terrorist incidents. Based on the overall findings, several diversification, hedging, and speculation strategies are proposed for mitigating the effects of these influences to financial market stakeholders and hotel managers. This study recommends further studies to be conducted including various sectors to reveal how different sectors react to terrorist activities.https://polytechnic-journal.epu.edu.iq/home/vol10/iss1/27event study,hotel industry,stock prices,terrorist incidents,tourist destinations
spellingShingle Dlawar M. Hadi
Farman M. Ahmed
National and Transnational Impacts of Terror on Hotel Stock Prices
Polytechnic Journal
event study,
hotel industry,
stock prices,
terrorist incidents,
tourist destinations
title National and Transnational Impacts of Terror on Hotel Stock Prices
title_full National and Transnational Impacts of Terror on Hotel Stock Prices
title_fullStr National and Transnational Impacts of Terror on Hotel Stock Prices
title_full_unstemmed National and Transnational Impacts of Terror on Hotel Stock Prices
title_short National and Transnational Impacts of Terror on Hotel Stock Prices
title_sort national and transnational impacts of terror on hotel stock prices
topic event study,
hotel industry,
stock prices,
terrorist incidents,
tourist destinations
url https://polytechnic-journal.epu.edu.iq/home/vol10/iss1/27
work_keys_str_mv AT dlawarmhadi nationalandtransnationalimpactsofterroronhotelstockprices
AT farmanmahmed nationalandtransnationalimpactsofterroronhotelstockprices