Examining the market value of mobile channel addition in the tourism industry: An event study approach
Abstract
The rapid proliferation of smartphones and skyrocketing adoption of broadband wireless services have encouraged established companies to use direct-to-customer mobile channels to reach and create new markets in the hospitality and tourism industries. To measure the value created by mobile channel addition, this paper aims to (1) apply the financial market analysis technique to assess mobile channel performance, (2) quantify the value of mobile channel addition by measuring both the short-run abnormal return around the firm's mobile application release date, and long-term risk adjusted returns (3) and examine the moderating effects of entry order on the direction and magnitude of the mobile channel addition/investor value relationship. This study finds that the shareholders of lodging and air transportation companies earned positive abnormal return over the short term. As opposed to general exceptions, the study reveals that mobile channel addition has no significant effect on firms' equity values over the long term. The results also indicate that order of entry, as a moderating factor, has no significant impact on the mobile channel performance reflected on the stock market return.
Degree
M.S.
Advisors
Tang, Purdue University.
Subject Area
Marketing|Finance|Recreation
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