The goal of this research is to identify the investment preferences of top managers and owners of four- and five-star hotels and the impact of the COVID-19 pandemic on their investment planning. The ...study examines various factors, including the individual characteristics of executives (such as gender, age group, education level, and position held in the hotel unit), and their perceptions of the pandemic’s effects on their investment planning. To the best of our knowledge, this is the first attempt to capture the pandemic’s impact on investment options, planning, and spending for luxury hotels. The study first conducted a structured questionnaire survey to record investment priorities under two distinct scenarios: one prior to the pandemic and another after the pandemic’s spread and containment measures. Statistical tests were then used to compare the results between the two periods, revealing clear differences in investment choices among top executives and owners. Chi-square tests were also employed to examine the impact of individual characteristics on executives’ perceptions of the pandemic’s impact on their investment planning and their willingness to limit investment spending. Ordinal regressions were used to explore association further. The findings show that participants’ age group was associated with their perception of the pandemic’s negative impact on investment planning and their willingness to limit investment spending. Participants’ position in the hotel unit partially explained their willingness to reduce investment resources during the pandemic. Therefore, the research highlights that the age of higher management in luxury hotels impacts the business's ability to adapt to the post-COVID-19 environment. The results also suggest that policy makers' public measures aimed at enhancing executives’ willingness to invest during difficult periods should consider these factors.
Acknowledging a gap in the literature, the study performs an investigation on short-term contrarian profits and their sources for the Athens Stock Exchange (ASE). The methodology is based on ...Jegadeesh and Titman (Review of Financial Studies, 8, 973-93,
1995
); however, this paper employs annually rebalanced size-sorted subsamples instead of a one-off arrangement throughout the sample period. Other key contributions relate to: (a) testing the effect on the empirical results of the choice of an equally as opposed to a value weighted index as a proxy for the market portfolio, and (b) testing for the January effect following the ongoing discussion and disagreement in the literature on seasonality. Empirical findings suggest that short-run contrarian profits are present in the ASE. Furthermore, although both underreaction to common factors and overreaction to the firm-specific return component, appear to contribute to profits; the contribution of overreaction is much larger than that of underreaction. Not only so, but any contribution of the later is restricted to the month of January. Seasonality however has no effect on firm specific overreaction. The selection of a value weighted or an equally weighted index does not alter the main findings, and thus does not explain predictability for this market.
We provide evidence relating to contrarian and momentum profits for the LSE, using 64 strategies for all 6531 stocks traded from 1964 to 2005. Thorough analysis demands controlling for key potential ...(contradictory) explanations of the strategies’ profitability which span psychological characteristics (e.g. overreaction/underreaction), excess risk, seasonality, size, and microstructure induced biases. Results provide a measurement of the miscalculations which occur when ignoring survivorship and microstructure biases. Contrarian/momentum profits cannot be explained by seasonality, size, or a single factor risk model. However, the Fama–French three factor model rationalises all contrarian profits. Important differences are found when examining a truncated sample period demonstrating the need to recognise that financial markets can change markedly through time.
We examine short-term investor reaction to extreme events in the UK equity market for the period 1989 to 2004 and find that the market reaction to shocks for large capitalization stock portfolios is ...consistent with the Efficient Market Hypothesis, i.e. all information appears to be incorporated in prices on the same day. However, for medium and small capitalization stock portfolios our results indicate significant underreaction to both positive and negative shocks for many days subsequent to a shock. Furthermore, the underreaction is not explained by risk factors (e.g. Fama and French,
1996
) calendar effects, bid-ask biases or unique global financial crises.
On face value studies documenting contrarian profits challenge the efficient markets paradigm. However most of them assume that systematic risk is constant when in reality it varies (Ross,
1989
) ...especially in emerging markets (Aggarwal et al.,
1999
). The study in the first instance investigates whether there are long-term contrarian profits in a thinly traded market, and whether such profits can be rationalized by time variation in risk using a Kalman Filtering approach. The results indicate that failing to incorporate time variation in risk may lead to biased conclusions and present false evidence against the Efficient Market Hypothesis.
This paper investigates the existence of contrarian profits and their sources for the Athens Stock Exchange (ASE). The empirical analysis decomposes contrarian profits to sources due to common factor ...reactions, overreaction to firm‐specific information, and profits not related to the previous two terms, as suggested by Jegadeesh and Titman (1995). Furthermore, in view of recent evidence that common stock returns are related to firm characteristics such as size and book‐to‐market equity, the paper decomposes contrarian profits to sources due to factors derived from the Fama and French (1993, 1996) three‐factor model. For the empirical testing, size‐sorted sub‐samples that are rebalanced annually are employed, and in addition, adjustments for thin and infrequent trading are made to the data. The results indicate that serial correlation is present in equity returns and that it leads to significant short‐run contrarian profits that persist even after we adjust for market frictions. Consistent with findings for the US market, contrarian profits decline as one moves from small stocks to large stocks, but only when market frictions are considered. Furthermore, the contribution to contrarian profits due to the overreaction to the firm‐specific component appears larger than the underreaction to the common factors.
