The Announcement Effects of Regional Tourism Industrial Policy: The Case of Hainan International Tourism Island in China

32 Pages Posted: 17 May 2014

See all articles by Jianjun Sun

Jianjun Sun

College of Tourism, Hainan University

Su Zhang

Central University of Finance and Economics (CUFE) - School of Economics

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration

Date Written: May 15, 2014

Abstract

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

Sun, Jianjun and Zhang, Su and Yamori, Nobuyoshi, The Announcement Effects of Regional Tourism Industrial Policy: The Case of Hainan International Tourism Island in China (May 15, 2014). Available at SSRN: https://ssrn.com/abstract=2437466

Jianjun Sun (Contact Author)

College of Tourism, Hainan University ( email )

58 Renmin Ave. Meilan District
Haikou, Hainan 570228
China

Su Zhang

Central University of Finance and Economics (CUFE) - School of Economics ( email )

Beijing
China

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration ( email )

2-1, Rokkodai cho
Nada-ku
Kobe, 657-8501
Japan

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