Date of Award
Doctor of Philosophy
Apparel, Events and Hospitality Management
This dissertation presents three studies applying event study methodology to lodging stock performance and exploring two primary research questions: (a) Is there abnormal stock performance for lodging stocks surrounding specified events that could indicate market inefficiencies that can be exploited by market actors, and, (b) Are there event study methodologies that are more or less robust for use in lodging stock event studies that should be considered in future research? The dissertation proposes revised procedures for addressing the methodological issues of non-normality and cross-sectional dependence in the data through the use of both parametric and nonparametric tests.
The first paper, entitled "Parametric and Nonparametric Analysis of Abnormal Stock Return and Volume Activity for Lodging Stock Mergers from 2004 to 2007," presents a study of the 19 public hotel companies that were merged during this period. The purpose of this study was to determine whether there were abnormal stock returns or volume activity in the periods surrounding the merger announcement date. The study identified statistically significant abnormal returns only on the merger announcement date and statistically significant volume activity only on the announcement date and thereafter.
The second paper, entitled, "Abnormal Stock Return and Volume Activity Surrounding CEO Transition Announcements for Lodging Companies," presents an investigation into whether or not there were abnormal stock market returns and volume activity for lodging stocks in the periods surrounding the announcement of Chief Executive Officer (CEO) transitions for these companies from 2003 to 2009. The study found that there were statistically significant negative abnormal returns in the periods prior to and after the announcement of a CEO transition. Statistically significant abnormal volume was identified in the period after the announcement of a CEO transition.
The third paper, entitled "The Impact of the Announcement of Weekly Lodging RevPAR on Lodging Stock Performance," presents an investigation on whether or not there were abnormal stock market returns on the announcement date of weekly RevPAR data by the lodging industry research firm STR. The study found that there were not statistically significant abnormal returns on the weekly RevPAR announcement date for the period from 2004 to 2009.
Bloom, Barry, "Applications of event study methodology to lodging stock performance" (2011). Graduate Theses and Dissertations. 11930.