Analyzing Lead-Lag Relationships in the Tourism Sector: A Pairwise Granger Causality Approach to Weekly Share Prices of Companies

Abstract

Understanding the evolution of the tourism industry in the face of the pandemic is critical not only for the rehabilitation of these enterprises, but also for shaping future policy and preparation for comparable global disasters. The performance of any companies is dependent upon the share price. As a result, understanding the relationship between a company's performance and share price is critical for navigating the complexity of financial markets and guaranteeing long-term success in an ever-changing business landscape. secondary data pertaining to the weekly share price of Expedia Ltd, Make My Trip Ltd and Thomas Cook (India) Limited for the period ranging from 1-1-2018 to1-1-24 were selected for the present study. Pair-wise analysis of the lead-lag relationship Granger Causality Tests among weekly share prices of companies like Expedia Ltd, MakeMyTrip Ltd, and Thomas Cook (India) Limited are critical for investors, financial analysts, and policymakers.