A Study On The Holiday Effect Of China’s Civil Aviation Industry

China’s stock market,which ranks second in global market value,plays an indispensable role in the construction of a socialist market economy and plays a very important role in resource allocation.However,various financial anomalies represented by holiday effects and IPO discounts still widely exist in China’s stock market.This indicates that there is still some room for improvement in the efficiency of resource allocation in China’s stock market.As an important basic industry and an important component of the comprehensive transportation system,the civil aviation industry plays an indispensable role in the national economy.Therefore,studying the holiday effects of listed companies in China’s civil aviation industry not only helps to improve the effectiveness of the stock market in China,but also helps to improve the resource allocation efficiency of civil aviation companies.This article first analyzes the daily return data of listed companies in China’s civil aviation industry from the first day of listing to the end of December 2022 through descriptive statistics and the GARCH(1,1)-M-GED model based on the introduction of dummy variables.The empirical results indicate that there is a significant holiday effect phenomenon in China’s civil aviation industry,and it exhibits significant heterogeneity characteristics.The heterogeneity is manifested as follows:(1)the post ganglionic effect of the same sample is greater than the pre ganglionic effect.(2)The holiday effects vary among different samples and holiday periods.Based on this,this article constructs a supply and demand model for the causes of holiday effects in China’s civil aviation industry,and analyzes the causes of holiday effects in China’s civil aviation industry.The analysis of the supply and demand model shows that under the constraints of unique characteristics of the civil aviation industry,such as demand rigidity,price and supply elasticity of the civil aviation industry,and small proportion of variable costs,consumer sentiment and economic development level have a significant positive effect on the holiday effect of the civil aviation industry.The above conclusion is supported by the empirical results based on the multiple linear regression model in this article.Based on the above conclusions,this article proposes relevant policy recommendations from the perspectives of investors,listed companies in the civil aviation industry,and market regulatory authorities.