COVID-19 IMPACT ON STOCK RETURNS OF TRAVEL, LEISURE AND HOSPITALITY SECTORS IN MALAYSIA

Abstract

The COVID-19 pandemic impacted the worldwide financial market, including Malaysia. The main purpose of this study is to investigate the effect of COVID-19 on stock returns of travel, leisure, and hospitality sectors. The sample period of this study is from January 2020 to December 2021. The variables were used in this study, including COVID-19 new cases, COVID-19 deaths, exchange rate, government response and stringency index, OPEC oil basket price, and CBOE volatility index. It is found that COVID-19 new cases, exchange rate, and volatility index have a significant and negative influence on stock returns of travel, leisure, and hospitality sectors. On the other hand, government response and stringency index and oil price statistically and positively affect stock returns. The result indicates that stock return is strongly affected by COVID-19. These findings will appeal to those interested in investment regarding stock returns. The empirical findings from this study are expected to benefit the continued development of the travel, leisure, and hospitality sectors in Malaysia.