(Nowy Sacz School of Business – National-Louis University, 2014) Szutowski, Dawid; Bednarska, Marlena A.
Innovations seem crucial for contemporary enterprises willing to achieve the objective
of increasing firm’s value. The aim of this paper is to examine, both conceptually and
empirically, the relationship between innovations and tourism enterprises’ market
value. Tourism sector was taken into consideration in order to fulfill the existing
research gap. This focused paper was based on relevant market data. Event study
and calendar time portfolio approaches were chosen to test investors’ responses
to innovation announcements. Six tourism companies listed on the Main Market
of Warsaw Stock Exchange were examined within the six years research period
and 34 innovation announcements were identified. Polish Press Agency database
and Warsaw Stock Exchange databases were used to collect data. Results indicate
that innovations affected positively investors’ valuation of tourism enterprises. The
average event day market value change equaled 0.63% and differed considerably
from the one-year one of 3.02% meaning that investors adjust their initial reaction
over time. Initially investors reacted mostly to marketing, distributional and external
relations innovations while within one-year period they attributed the most value to
marketing and external relations ones.