SHS Web Conf.
Volume 132, 2022Innovative Economic Symposium 2021 – New Trends in Business and Corporate Finance in COVID-19 Era (IES2021)
|Number of page(s)||12|
|Section||New Trends in Business and Corporate Finance in COVID-19 Era|
|Published online||05 January 2022|
Underestimating risk leading to the collapse of a market leader in tourism
1 University of Žilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Univerzitná 8215/1, 010 26 Žilina, Slovakia
2 Institute of Technology and Business, School of Expertness and Valuation, Okružní 517/10, 37001 České Budějovice, Czech Republic
* Corresponding author: firstname.lastname@example.org
The topic of this paper, underestimating risk leading to the collapse of the market leader in tourism, is demonstrated on the example of the British travel agency Thomas Cook, which at one time was one of the oldest and largest travel agencies in the world. The aim of this paper is to analyze the development of the stock prices of Thomas Cook from May 13, 2018 to May 19, 2019 and the factors that had an impact on the share price of this company in the monitored period. The base source of data are the share prices of the travel agency Thomas Cook in the specified period from May 13, 2018 to May 19, 2019 published by MarketWatch. A statistical description of time series is used, a moving average trend line is displayed, and a cause-and-effect analysis evaluating the impact of the published information on the value of Thomas Cook’s stocks is carried out. The general lesson for companies resulting from this contribution is that every negative event, announcement or piece of information has a negative impact on the value of a company’s shares and a collapse could happen even to the leader of a given industry. The collapse of Thomas Cook provides lessons for companies doing business in tourism, so that in the event of a planned merger, a suitable company is selected, the company’s funds are under control and development trends in the field are monitored.
Key words: Thomas Cook / stock price / factors affecting stock price / bankruptcy
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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