<strong>Event study approach: The case of Airbnb and hotel stocks</strong>

Using the event study approach, this paper measures the effect of announcements published on the Airbnb website on hotel stock prices. This research uses several parametric and nonparametric tests to increase the robustness of the results. The results of the various tests indicate that for announcements with general locations, there is no effect on stock prices, but that when an announcement has an exact location it negatively affects stock prices. The results can help investors to develop an investment strategy and strengthen the claim that Airbnb is a substitute to hotels.