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Gupta, Kapil
- Hedging Effectiveness of Futures Contracts:A Study of Select Stocks in Indian Tourism and Hospitality Sector
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Authors
Mandeep Kaur
1,
Kapil Gupta
1
Affiliations
1 Department of Management, I. K. Gujral Punjab Technical University, Kapurthala, Punjab, IN
1 Department of Management, I. K. Gujral Punjab Technical University, Kapurthala, Punjab, IN
Source
Journal of Hospitality Application and Research, Vol 13, No 1 (2018), Pagination: 1-15Abstract
This paper investigates the hedge effectiveness of futures contracts of tourism and hospitality sector in India using four sample stocks namely, ADANIPORTS, APOLLOHOSP, CONCOR and JETAIRWAYS, traded at NSE, for which data has been collected from January 1, 2016 to December 31, 2017 for near month futures contracts. The optimal hedge ratio is estimated using five specifications: naive, ordinary least square, autoregressive moving average ordinary least squares, vector autoregression and vector error correction. The study finds that one-to-one naive model provides superior hedging effectiveness over all the other models, implying equal investment in both spot and futures market to achieve highest effectiveness. Overall, the study finds that tourism and hospitality sector provides an effective platform for hedging with futures contracts.Keywords
Tourism, Hospitality, Futures Contract, Hedging Effectiveness and Optimal Hedge Ratio.
References
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- Examining the Performance of Initial Public Offerings:A Study of Indian Hospitality and Tourism Industry
Abstract Views :154 |
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Authors
Affiliations
1 Department of Management, I K Gujral Punjab Technical University, Jalandhar, Punjab, IN
1 Department of Management, I K Gujral Punjab Technical University, Jalandhar, Punjab, IN
Source
Journal of Hospitality Application and Research, Vol 13, No 2 (2018), Pagination: 63-72Abstract
Present study is an attempt to examine the listing day market performance of public issues floated by hospitality and tourism firms in India. During the sample period of 15 years (from January 2004 to March 2018) the average initial day Market Adjusted Excess Return (MAER) was found to be 18.8%. Further, the average return of travel support services segment was observed to be highest within the sector. The findings of the study are consistent with Chen and Chen, (2010).Keywords
Hospitality and Tourism Industry, Initial Public Offerings (IPOs), Underpricing.References
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