Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334266 
Year of Publication: 
2024
Citation: 
[Journal:] Business, Management and Economics Engineering (BMEE) [ISSN:] 2669-249X [Volume:] 22 [Issue:] 2 [Year:] 2024 [Pages:] 255-277
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
Purpose - The research identifies the impact of the Russia-Ukraine war on the stock prices of six publicly traded European airlines and evaluates their ability to adapt to this situation. Research methodology - The dependence of the development of airline stock prices on the level of public and institutional stress due to the war was measured using GoogleTrends and is analysed on the basis of a Vector Autoregression model (VAR). Findings - A short-term negative relationship was confirmed between the development of stock prices and GoogleTrends; the impact of the stress related to the war was negligible about 5 months after the outbreak thereof. Those companies that were the fastest to adapt to the shock of the war in terms of share prices are identified.  Research limitations - The link between GoogleTrends, as an input variable reflecting market sentiment, and the stock prices of European airlines, is considered a limitation.  Practical implications - The impact of investor sentiment on the returns on the stocks of airlines is a thing of the past; which is an important finding for financial market participants and airlines alike.  Originality/value - The ability of the specific airlines to adapt to the shock of war creates a competitive advantage.
Subjects: 
air transport
GoogleTrends
share price
VAR model
war
JEL: 
D53
G15
C32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.