The Announcement Effects of Regional Tourism Industrial Policy: The Case of Hainan International Tourism Island in China
32 Pages Posted: 17 May 2014
Date Written: May 15, 2014
China’s Hainan Island is well-suited to investigate the announcement effects of regional tourism industrial policy on markets in a tourist destination region. Based on a sample of 19 Hainan concept listed firms distributed over several different industries, we explore the announcement effects of the national policy of Hainan International Tourism Island using an event-study approach. The inferences with and without clustering show that the averages of (standardized) accumulative abnormal returns are not different from zero prior to the announcement and the national policy announcement has significant and positive effects on the price of Hainan concept stocks. These findings indicate that the national policy bestows upon Hainan Island a tourism industrial identity, the identity is to prove valuable and all industries can benefited from it.
Keywords: Announcement effects, Tourism, Regional industrial policy, Tourism industrial identity, Hainan
JEL Classification: O25, R11
Suggested Citation: Suggested Citation