Institutional investors and the Monday effect on tourism stocks

W. K. Leung, Tien Sheng Lee

Research output: Journal PublicationArticlepeer-review

19 Citations (Scopus)


Stock return for the general market on Mondays reverses trend in the 1990s, and is positive in most of the years in that period. However, Monday stock return in the 1980s is still significantly negative (this significantly negative Monday return is called the Monday effect). Tourism stocks are known to be more volatile than the general market in the US. In this study, we concentrate on tourism stocks and find that they exhibit the same trends as that of the general stock market. We further divide tourism stocks into four different sectors: (1) Eating and Drinking Places, (2) Hotels, Rooming Houses, Camps, and other Lodging Places, (3) Amusement and Recreation Services and (4) Scheduled Air Transportation. We found different trends among the four different sectors, and they are clearly related to the percentage of institutional investors in the sectors. Our findings have strong implications on how to attract more institutional investors into the tourism industry, which is one of the most important ways to finance future growth in that industry.

Original languageEnglish
Pages (from-to)348-372
Number of pages25
JournalInternational Journal of Hospitality Management
Issue number3
Publication statusPublished - Sept 2006
Externally publishedYes


  • Institutional investors
  • Monday effect
  • Tourism stocks

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management


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