Table 2.
Cross-Sectional Analysis of CARs for the Global Airline Industry This table presents OLS estimates of the impact of the announcement of COVID-19 as a global pandemic by World Health Organization (WHO) and Pfizer, BioNTech COVID-19 Vaccines Effectiveness Results on CARs for the global airline industry. Panel 1 reports the market reactions of COVID-19 declaration as a global pandemic by WHO. Panel 2 and Panel 3 presents the market reactions of Pfizer, BioNTech COVID-19 vaccine results. In Panel 2 the variables are calculated from the 2019 year-end accounting figures. In Panel 3 the variables are calculated based on 2020 interim accounting figures. The dependent variables are the airline CARs for two different time windows: [-1,1] and [-1,5]. SIZEi is the total assets (natural logarithm of total assets, millions of Euro); OWNi is the cumulated ownership of the three main shareholders (%); LIQi is the ratio of current assets to total assets (%); TLEVi is the ratio of total debt to total assets (%); ROAi is the ratio of operating income to total average assets (%); LCDi is a dummy variable that takes the value 1 for low-cost carriers and 0 otherwise; STOi is a dummy variable that takes the value 1 if the main owner is the state or another public entity and 0 otherwise*, ** and *** denote statistical significance at the 10%, 5% and 1% level, respectively. Country-clustering robust errors are used (in parentheses).
| Panel 1: COVID-19 as a Global Pandemic |
Panel 2: Pfizer, BioNTech COVID-19 Vaccine Results |
Panel 3: Pfizer, BioNTech COVID-19 Vaccine Results |
||||
|---|---|---|---|---|---|---|
| [-1,1] | [-1,5] | [-1,1] | [-1,5] | [-1,1] | [-1,5] | |
| Constant | −0.116 (−0.834) | −0.130 (−0.901) | 0.362 (1.183) | 0.440 (1.444) | 0.331 (0.980) | 0.215 (1.025) |
| Ln(SIZE) | 0.010** (2.289) | 0.030** (2.271) | −0.011** (−2.200) | −0.015** (−2.148) | −0.010* (−2.011) | −0.012** (−2.582) |
| OWN | 0.081** (2.222) | 0.345*** (3.549) | 0.126 (1.767) | 0.216** (1.925) | 0.176*** (3.273) | 0.153** (2.481) |
| LIQ | 0.064** (2.203) | 0.551*** (2.699) | 0.184** (2.481) | 0.257** (2.422) | 0.142** (2.340) | 0.267** (2.444) |
| TLEV | −0.244*** (−5.330) | −0.700*** (−4.002) | 0.361** (2.255) | 0.430** (2.319) | 0.252** (2.180) | 0.344** (2.203) |
| ROA | 0.205 (1.488) | 0.369 (1.588) | 0.257 (1.577) | 0.586 (1.555) | 0.123 (1.382) | 0.171 (1.275) |
| LCD | 0.124** (2.221) | 0.137** (2.307) | 0.075** (2.180) | 0.067** (2.211) | 0.057** (2.189) | 0.063** (2.285) |
| STO | −0.144** (−2.201) | −0.161** (−2.301) | −0.186** (−2.533) | −0.158** (−2.288) | −0.136** (−2.206) | −0.150** (−2.540) |
| Adj. R2 | 0.282 | 0.317 | 0.279 | 0.341 | 0.285 | 0.364 |