Analyzing airlines stock price volatility during COVID‐19 pandemic through internet search data

Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19

To date, there has been limited research undertaken into firm value determinants in the air transport industry, one of the most essential sectors for global business. In view of this, in this study, we review and synthesise the literature that focuses on the value of firms in this sector and discuss conceptually and empirically the determinants influencing airlines' stock values. Our main objective is to widen our understanding of the current state of research on the firm value of air transport companies. Using the systematic literature review (SLR) approach, we classify 173 papers published from 1984 to 2021. We find considerable changes in academic interest in the topic over the time period analysed, especially as a consequence of crisis-induced market crashes. In addition, we classify the main research themes relating to airlines' market value, identify gaps, and introduce potential future research avenues in this area. Among the themes identified, the adjustment in the industry-level factors such as alliances, market structure and competition were the most common source of fluctuations in airlines' stock value. However, we find shifting to sustainability initiatives and its consequence for stakeholders' value as one of the most discussed topics in this context. The trend has gained attention since early 2020 due to the emergence of the Covid-19 pandemic as companies are looking for green and sustainable ways to protect the value in crisis time. Our findings assist transportation researchers and executives in addressing major value drivers of airline firms.

Impact of COVID-19 on public social life and mental health: a statistical study of google trends data from the USA

The COVID-19 pandemic has caused a significant disruption in the social lives and mental health of people across the world. This study aims to asses the effect of using internet search volume data. We categorize the widely searched keywords on the internet in several categories, which are relevant in analyzing the public mental health status. Corresponding to each category of keywords, we conduct an appropriate statistical analysis to identify significant changes in the search pattern during the course of the pandemic. Binary segmentation method of changepoint detection, along with the combination of ARMA-GARCH models are utilized in this analysis. It helps us detect how people's behavior changed in phases and whether the severity of the pandemic brought forth those shifts in behaviors. Interestingly, we find that rather than the severity of the outbreak, the long duration of the pandemic has affected the public health status more. The phases, however, align well with the so-called COVID-19 waves and are consistent for different aspects of social and mental health. We further observe that the results are typically similar for different states as well.

COVID-19 pandemic and air transportation: Summary of Recent Research, Policy Consideration and Future Research Directions

The COVID-19 pandemic can be considered an unparalleled disruption to the aviation industry in the last century. Starting with an at-that-time inconceivable reduction in the number of flights from March 2020 to May 2020, the aviation industry has been trying to navigate through and out of the crisis. This process is accompanied with a significant number of scientific studies, reporting on the direct and indirect impact of the COVID-19 pandemic on aviation and vice versa. This paper reviews the impacts in context of the recent literature. We have collected nearly 200 well-published papers on the subject in the years 2021/2022 and dissected them into a framework of eight categories, built around: airlines, airports, passengers, workforce, markets, contagion, sustainability, and economics. We highlight the essence of findings in the literature and derive a set of future research directions and policy considerations which we deem important on the way towards pandemic-resilient aviation.

Effects of investor sentiment and country governance on unexpected conditional volatility during the COVID-19 pandemic: Evidence from global stock markets

This paper first investigates the relationship between investor sentiment, captured by internet search behaviour, and the unexpected component of stock market volatility during the COVID-19 pandemic. According to data on 12 major stock markets, our research indicates a positive correlation between the Google search volume index on COVID-19 and the unexpected volatility of stock markets. The result suggests that greater COVID-19-related investor sentiment during this pandemic is associated with higher stock market uncertainty. Our study further examines whether country-level governance plays a role in protecting stock markets during this pandemic and reveals that the unexpected conditional volatility is lower when a country's governance is more effective. The impact of investor sentiment and country governance on unexpected volatility after the initial shock of COVID-19 is also investigated. The findings demonstrate the importance of establishing good country-level governance that can effectively reduce stock market uncertainty in the context of this pandemic, and support continual policy development related to investor protection.