The COVID-19 pandemic has significantly changed individuals' daily life due to increased risk aversion, which has affected their consumption patterns and preferences. To understand the effect of the pandemic on consumer behavior through risk aversion, this study investigated the relationships among the pandemic, social distancing, online information search, and firm performance in the hospitality and tourism industries. For data analysis, we developed two joint models and estimated the models using the fixed-effects method. The results of the first model showed that social distancing triggered by COVID-19 news stories affected firm value. The second regional-level analysis revealed that the number of confirmed cases and COVID-19 news stories influenced individuals’ social distancing and online information search for tourist attractions and the changed social distancing and online search, in turn, affected the volume of online hotel reviews.
Bibliographical noteFunding Information:
This work was supported by the Yonsei University Research Grant of 2020 and the Ministry of Education of the Republic of the Korea and National Research Foundation of Korea [ NRF-2017S1A5B6053101 ] [ NRF-2018R1D1A1B07045220 ].
© 2021 Elsevier Ltd
All Science Journal Classification (ASJC) codes
- Business and International Management
- Tourism, Leisure and Hospitality Management
- Strategy and Management