How to Survive a Pandemic: The Corporate Resiliency of Travel and Leisure Companies to the COVID-19 Outbreak

Tourism Management, Forthcoming

25 Pages Posted: 23 Dec 2020

See all articles by Tomasz Kaczmarek

Tomasz Kaczmarek

Poznan University of Economics and Business

Katarzyna Perez

Poznan University of Economics and Business

Ender Demir

Istanbul Medeniyet University

Adam Zaremba

Montpellier Business School; Poznan University of Economics and Business

Date Written: December 22, 2020

Abstract

What protects travel and leisure companies from a global pandemic, such as COVID-19? To answer this question, we investigate data on over 1,200 travel and leisure companies in 52 countries. We consider 80 characteristics, such as company financial ratios, macroeconomic variables, and government policy responses. Using regressions and machine learning tools, we demonstrate that firms with low valuations, limited leverage, and high investments have been more immune to the pandemic-induced crash. We also find a beneficial effect of stringent containment and closure interventions. Finally, our results indicate that countries with less individualism may be better positioned to cope with the pandemic. Our findings have implications for regulatory bodies, managers, and investors concerning future pandemic outbreaks.

Keywords: COVID-19, novel coronavirus, tourism and leisure, stock market, corporate immunity, policy responses, containment and closure

JEL Classification: G12, G15, G19, I18, I19, Z30, Z31, Z32

Suggested Citation

Kaczmarek, Tomasz and Perez, Katarzyna and Demir, Ender and Zaremba, Adam, How to Survive a Pandemic: The Corporate Resiliency of Travel and Leisure Companies to the COVID-19 Outbreak (December 22, 2020). Tourism Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3753409 or http://dx.doi.org/10.2139/ssrn.3753409

Tomasz Kaczmarek

Poznan University of Economics and Business ( email )

al. Niepodległości 10
Poznań, Poznań 61-875
Poland

Katarzyna Perez

Poznan University of Economics and Business ( email )

al. Niepodległości 10
Poznań, Poznań 61-875
Poland

Ender Demir

Istanbul Medeniyet University ( email )

D-100 Karayolu
Merdivenkoy Mevkii No:6/1 Goztepe/Kadıkoy
Istanbul
Turkey

Adam Zaremba (Contact Author)

Montpellier Business School ( email )

2300 Avenue des Moulins
Montpellier, Occitanie 34000
France

Poznan University of Economics and Business ( email )

al. Niepodległości 10
Poznań, 61-875
Poland

HOME PAGE: http://adamzaremba.pl

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