THE RELATIONSHIP BETWEEN THE EQUITY RETURN LEVELS OF AIRLINE COMPANIES AND UNANTICIPATED EVENTS: THE CASE OF THE 1979 DC-10 GROUNDING

This study examines the effects on the equity return levels of several U.S. airline companies following the June 6, 1979 American Airlines DC-10 crash and subsequent grounding of DC-10s. Using event study methodology, the results indicate that the equity prices of the effected firms immediately and fully reflected the relevant information associated with the grounding announcement. Additionally, the evidence reveals that the market was able to discriminate among airline companies on the basis of their levels of DC-10 inventories.

• Availability:
  • Find a library where document is available. Order URL: https://www.library.northwestern.edu/find-borrow-request/requests-interlibrary-loan/lending-institutions.html
• Authors:
  • Mansur, I
  • Cochran, S J
  • FROIO, G L
• Publication Date: 1989-12

Media Info

• Features: References; Tables;
• Pagination: p. 355-365
• Serial:
  • LOGISTICS AND TRANSPORTATION REVIEW
  • Volume: 25
  • Issue Number: 4

Subject/Index Terms

• TRT Terms: Air transportation; Aircraft; Aviation; Construction; Equity; Financial analysis; Market research; Return on investment
• Old TRIS Terms: Aircraft construction
• Subject Areas: Aviation; Construction; Finance; Highways; Safety and Human Factors; Society; Vehicles and Equipment;

Filing Info

• Accession Number: 00494888
• Record Type: Publication
• Source Agency: University of British Columbia, Vancouver
• Files: TRIS
• Created Date: Jun 30 1990 12:00AM