The Impact of Covid-19 on the Returns and Risk of Listed Travel and Leisure Stocks in Vietnam

Abstract

This article aims to analyze the impacts of Covid-19 on the returns and risks of listed travel and leisure stocks in Vietnam. Tests for difference, OLS regression, and test for structural changes were used to process data collected from Hanoi Stock Exchange (HNX) and Ho Chi Minh City Stock Exchange (HOSE) from January 2, 2019, to August 31, 2020. The results show that most of the returns on travel and leisure stocks were not affected by news of Covid-19 (except for VJC stock) but Covid-19 increased the volatility of six stocks in this industry. The study also found that travel and leisure stocks tended to be “defensive” with a structural break simultaneously in the systematic risk component related to five stocks before and during the wave of Covid-19. Besides, depending on the travel and leisure stocks under consideration, the increase in total risk was mainly explained by the increase in systematic and unsystematic risks.