Financing Tourist Development Through Stock Capital: Evidence from the Greek Hotel Sector

Abstract

As an economic and social activity, tourism could be one of the most important factors for the development of a country. This paper uses the study of business events to investigate the success of financing the tourist sector through stock capital, especially the accommodation sector. Five large tourist enterprises were the focus of the research and the events that were the core of analysis were announcements about financial results. The study identifies and forecasts the way in which stock returns generally react to tourist sector announcements, such as the dissemination of annual, semi-annual and quarterly financial reports. The empirical evidence indicates that the annual reports have a positive impact on stock returns. In the paper the Athens Stock Exchange (ASE) is put forward as an alternative opportunity for tourism companies to raise capital and to extend their development plans.

Keywords: Tourism, Financial results, Event study analysis

JEL Classification: G14, L83