Abstract:
In this paper, the impact of the Easter Sunday Attack on the Hotel and Travel Sector
in Sri Lanka has been investigated by using the Event Study Methodology following
the Efficient Market Hypothesis (EMH). The Market Model is used in analyzing the
Abnormal Returns of stocks by using daily stock prices on thirty-three (33)
companies belong to Hotel and Travel Sector in CSE and for the Market Return data,
daily ASPI is considered. This empirical study's major objective is to measure and
quantify the effects of the Easter Sunday attack on the Hotel and Travel Sector with
the Market Efficiency by using Graphical presentation of Average Abnormal Return
and Cumulative Average Abnormal Return and t - Statistics Analysis. Consistent with
the observed findings, the market has been identified as an efficient and negatively
responded market regarding Easter Sunday Attack's event since the quick drop on the
event day. Practically, the investors of Hotel and Travel Sector Companies will be
able to trade securities in a market where the possibility of beating was eliminated.
