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

Abstract

As an economic and social activity, tourism can be one of the most important factors in 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. The research focuses on five large tourist enterprises and the ‘events’ analysed are 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 annual reports have a positive impact on stock returns. The authors suggest that the Athens Stock Exchange (ASE) provides an alternative opportunity for tourism companies to raise capital and to extend their development plans.