Review of Recent Legacy Airline Mergers in the U.S.: An Empirical Study from Investors’ Perspectives

Authors

  • Carol C. Huang Western Connecticut State University
  • Chris C. Hsu CUNY Aviation Institute at York College
  • Triant Flouris Hellenic American University

DOI:

https://doi.org/10.33423/jabe.v21i3.2080

Keywords:

Business, Economics, Finance, GARCH-EVT-Copula, Investors, Airline Mergers, United States

Abstract

Since the 2008 financial crisis, three legacy airline mergers have dramatically reshaped the landscape of the U.S. airline industry. Due to the lengthy process involved in an airline merger, it is important to understand whether the investors view the merger favorably. This study examined how investors reacted to the three recent legacy airline mergers in the U.S. by adopting a GARCH-EVT-Copula approach. Our empirical results revealed that positive dependencies between returns and trading volume changes were observed for each merger during various periods, indicating that investors were optimistic about the mergers. Accordingly, implications for future mergers are discussed.

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Published

2019-07-17

How to Cite

Huang, C. C., Hsu, C. C., & Flouris, T. (2019). Review of Recent Legacy Airline Mergers in the U.S.: An Empirical Study from Investors’ Perspectives. Journal of Applied Business and Economics, 21(3). https://doi.org/10.33423/jabe.v21i3.2080

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Section

Articles