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Revisit stock price bubbles in the COVID-19 period: Further evidence from Taiwan’s and Mainland China’s tourism industries

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  • Mei-Chih Wang

    (63293Providence University, Taichung)

  • Tsangyao Chang

    (34902Feng Chia University, Taichung)

  • Jennifer Min

    (34908Ming Chuan University, Taipei)

Abstract

This study applies both the sup augmented Dickey–Fuller (SADF) and the generalized SADF tests to investigate whether bubbles exist in the Taiwan’s and Mainland China’s tourism stock markets, focusing on the COVID-19 period. We use the weekly stock price index during the periods of January 4, 2000 to April 27, 2020 in Taiwan and August 13, 2007 to April 27, 2020 in Mainland China, respectively. Empirical results demonstrate the existence of bubbles in the Taiwan tourism stock market during some subsample periods, including the recent COVID-19 outbreak. In contrast with our findings concerning Taiwan, our empirical results found that the COVID-19 outbreak had no impact on the tourism stock market of Mainland China. Especially important, we found that the fourth bubble in the Taiwan stock market began from March 23, 2020, and grew gradually, bursting on March 30, 2020. Our results have important policy implications for investors who attempt to invest in the tourism stock market.

Suggested Citation

  • Mei-Chih Wang & Tsangyao Chang & Jennifer Min, 2022. "Revisit stock price bubbles in the COVID-19 period: Further evidence from Taiwan’s and Mainland China’s tourism industries," Tourism Economics, , vol. 28(4), pages 951-960, June.
    • Handle: RePEc:sae:toueco:v:28:y:2022:i:4:p:951-960
    DOI: 10.1177/1354816620983954
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    References listed on IDEAS

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    Cited by:

    1. Augusto Hasman & Stefano Borzillo, 2024. "The hospitality industry and COVID-19: Stock price crash risk," Tourism Economics, , vol. 30(6), pages 1634-1641, September.
    2. Liu, Yan & Cheng, Xian & Liao, Stephen Shaoyi & Yang, Feng, 2023. "The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).

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