Solidarity actions with Ukraine and hospitality firm value

The objective of this research note is to analyze the effect of solidarity actions following the invasion of Ukraine on hotel and restaurant firms' market value. Press releases and corporate websites of 117 companies were investigated to determine the actions taken in response to the Russian invasion of Ukraine. Then, using an event study methodology, cumulative abnormal returns were calculated following the actions taken. The results indicate that first movers benefited the most from solidarity actions, while middle-point intensity actions (versus strong or light actions) brought about the highest effects on market value.

Automated summary

The objective of this research is to analyze the impact of solidarity actions on hotel and restaurant firms' market value after the invasion of Ukraine. The study examined press releases and corporate websites of 117 companies to determine the actions taken in response to the Russian invasion. Using an event study methodology, cumulative abnormal returns were calculated. The findings suggest that companies that took early actions benefited the most, and middle-point intensity actions had the greatest impact on market value.