High short interest stocks performance during the Covid-19 crisis: an informational efficacy measure based on permutation-entropy approach

Purpose: The author examine the performance of a number of high short interest stocks along with the prices of the GameStop stock and three major stock exchange indices, particularly for the period after the eruption of the Covid-19 crisis. Design/methodology/approach: With the employment of the complexity–entropy causality plane approach, the author categorize the stock prices in terms of the level of informational efficiency. Findings: The author reported that the efficiency level for the index of the high short interest stocks falls considerably, not only at the onset of the Covid-19 crisis but during the health crisis period at hand. This is translated into proof of less uncertainty in predicting the stock prices of these specific stocks. On the other hand, the GameStop prices exhibit the same behavior as those with the high short interest firms, but change considerably in the middle of the crisis. The reversal of the behavior, by obtaining higher informational efficiency levels, is attributed to the short squeeze frenzy that increased the price of the stock many times over. Among the stock market indices, the Dow Jones Industrial Average and the S&P 500 decreased their efficiency levels marginally, after the surge of the crisis, while the Russell 2000 index kept the level intact. The high and stable degree of randomness could be attributed to the measures taken concurrently by the Federal Reserve and the government immediately after the outbreak of the crisis. Originality/value: This is one of the few studies that examine the impact of short selling behavior on the efficiency level of certain stocks' prices, particularly during the health public crisis. It provides an alternative approach to measuring quantitatively the degree of inefficiency and randomness. © 2023, Emerald Publishing Limited.

Designing Predictive Models for Customer Recommendations During COVID-19 in the Airline Industry

Although travel restrictions imposed by countries are gradually lifted, the airline industry rebounds only when customers’confidence in air travel is restored. Airlines that generate positive customer recommendations during the pandemic can have a competitive advantage in the post-pandemic environment. This article focuses on the prediction of customer recommendations of airlines during the pandemic. The results show that airline ratings established before the pandemic have weak performance, implying that customer recommendations could be based on other factors that are unique to the pandemic. In addition, COVID-19 travel safety of airlines and sentiments hidden in customer reviews are valuable for predicting customer recommendations. The results also confirm that flight duration affects the predictive powers of airline rating established before the pandemic and COVID-19 travel safety rating of airlines. There are important implications for the airline industry. First, airline ratings established before pandemic is not valuable to predict customer recommendations during COVID-19, underpinning the importance of including COVID-19 travel safety measures as part of the airline evaluation criteria in the future. Besides, COVID-19 travel safety is more relevant to customer recommendations in the long-haul markets. When selecting airlines for evaluation, airline rating organizations can give priorities to airlines that offer long-haul flights. IEEE