The Impact of the Covid-19 Pandemic on Investor Sentiments: Evidence from 12 Selected Major Tourism-Related Companies

Abstract

To understand investor confidence and its change in tourism, which was
one of the industries most affected by the pandemic, the paper presents the
stock price movements of twelve major listed companies in the tourism
industry in the first year after the Covid-19 pandemic outbreak. The 1-
month interval of closing prices fromJanuary 1, 2020, before the pandemic
was announced, to April 1, 2021, is observed to assess investor confidence.
Investor confidence is compared between companies in different sectors
of the tourism industry. The pandemic itself has not had a clear impact
on stock prices as it has developed, showing that some of them recovered
within a few months, while others have not, even a year after the outbreak
of the pandemic. Based on the one-year stock price movements after the
outbreak, three groups of tourism-related companies are identified.