The Effects of FED Monetary Policy Changes on Tourism & Hospitality Stock Returns: Evidence from France

Barut P., Katircioglu S.

SAGE Open, vol.15, no.2, 2025 (SSCI, Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 15 Issue: 2
  • Publication Date: 2025
  • Doi Number: 10.1177/21582440251336506
  • Journal Name: SAGE Open
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, ERIC (Education Resources Information Center), Directory of Open Access Journals
  • Keywords: FED, France, monetary policy, stock return, tourism
  • İstanbul Ticaret University Affiliated: Yes

Abstract

The current study investigates the effects of the United States’ FED monetary policy changes on tourism and hospitality stock returns in France which ranks first in international tourism markets. Monthly time series data from 1995 and onward are analyzed using the autoregressive distributed lag approach. Results from time series analyses reveal that the FED’s monetary policy changes exert statistically and long-term significant effects on the stock returns of tourism and hospitality firms in France. The study confirms that monetary policy changes by the FED significantly drive tourism stock returns in France. This study concludes that the FED monetary policy exerts multifaceted effects on French tourism and hospitality stock returns. Thus, policy implications for the cases of adverse and/or positive effects are presented at the end of this study.