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Mohammad Shameem Jawed

Title: : Crisis, firm characteristics and stock performance: evidence from Hospitality and Tourism sector

Journal: Tourism Recreation Research

This study investigates the critical firm-level strengths and weaknesses
that explain cross-sectional variations in abnormal stock returns of

Hospitality and Tourism (HT) firms during different phases of a crisis. We
used the event study and multivariate regression framework for analysing
the Indian HT firms’ data around the COVID-19 crisis. While reporting a
significant negative influence of COVID-19, we identified the early crisis,

market crash and continuation of the crisis periods. Furthermore, we
observe that during the early-crisis period, business diversity, financial
stability and board diversity improved HT firms’ strength to withstand the
risk, while business group affiliation was of little help. During the market

crash and continuation of the crisis phase,
better capital intensity and financial stability
proved helpful. The managers of HT firms can
take cues from this study to understand firm-
level characteristics that provide resilience to

their firms’ value in managing different phases
of the crisis.

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