Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age

Abdi, Yaghoub; Li, Xiaoni; Càmara‐Turull, Xavier

doi:10.1007/s10668-021-01649-w

Cited by 161 publications

(134 citation statements)

References 83 publications

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“…There are other external factors with high influence, such as the Indian national system, which is considered to be influential in the desired, future-state state. Regarding the importance assigned to the relation with the stakeholders, in terms of aeronautical customers, some authors have reported that an airliner's participation in social and environmental activities is positively and significantly correlated with a higher level of financial efficiency [43]. In order to avoid environmental degradation, stakeholders increasingly require green-friendly practices and disclosure [44].…”

Section: Tasl Resultsmentioning

confidence: 99%

Analysis of the Main Corporate Social Responsibility Drivers and Barriers and Their Foreseeable Evolution—Evidence from Two Leading Multinationals: The Airbus and TASL Cases

Martín¹,

Heras

Sánchez

2022

Sustainability

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This article undertakes a comparative analysis of the corporate social responsibility (CSR) drivers and barriers in the European multinational Airbus and the Indian Tata Advanced Systems Ltd. (TASL), both in their current, as-is state, and in the desirable future, should-be state. These in-depth case studies are based on structured interviews, complemented with a survey. The research findings provide qualified, bounded support to the currently preponderant view among CSR scholars, regarding both the preeminent role of the internal (vs. external) drivers and the key importance of moral-driven (vs. profit-driven) drivers such as the values of the top management. The caveat here reflects that, contingent on cultural issues, individual companies might not have reached this state yet. Furthermore, these findings suggest that the current CSR situation could be characterized as contingent, transitional and convergent; the practical implications for the various CSR stakeholders of this characterization are discussed. The most salient trait, convergence, suggests the existence of a certain commonality in CSR’s foreseeable evolutionary path, even among disparate companies, converging on such aspects as the ever-increasing role of the value system and of the shared, internalized company culture, and the shift of CSR’s role from obligation to potential source of competitive advantage.

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Section: Tasl Resultsmentioning

confidence: 99%

Analysis of the Main Corporate Social Responsibility Drivers and Barriers and Their Foreseeable Evolution—Evidence from Two Leading Multinationals: The Airbus and TASL Cases

Martín¹,

Heras

Sánchez

2022

Sustainability

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“…In another study (Abdi, et al 2022) based on the collected data from 38 airlines worldwide for the period 2009 to 2019, it was revealed that contributions to governance initiatives improve a civil aviation firm's market-to-book ratio. It was also found that a firm's participation in social and environmental activities is positively and significantly rewarded by a higher level of financial efficiency in the airline industry.…”

Section: Studies On Ancillary and Cargo Revenues In Aviationmentioning

confidence: 99%

Examining the impact of cargo and ancillary revenues on net profit for full service carrier airlines

Bas¹,

Aksoy²

2022

IJBES

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In this study, the relationships between cargo revenues, ancillary revenues and net profitability of airline companies were examined in the examples of three full-service airline companies (Turkish Airlines, American Airlines, Delta Air Lines). Methodologically, a logarithmic econometric model was used in which cargo revenues and ancillary revenues were included as independent variables and net profit as the dependent variables. The data used for the period 2014Q1-2019Q4 were collected from the annual reports on the official websites of related airline companies and The International Air Transport Association (IATA). EViews 10 and STATA-15 versions, which are the most modern econometric analysis programs that can be used to control the stationarity, were used in the analysis of the data. In addition to econometric analyzes and general statistics, Cross Section dependency tests, CADF second-generation unit root tests, Delta slope homogeneity tests, Panel cointegration analysis, Westerlund Panel cointegration tests and Dumitrescu Hurlin Panel Causality tests and Breusch Pagan LM Tests were also performed. The study revealed that there is cointegration between cargo revenues, ancillary revenues and net profit, and there is a one-way causality relationship from both cargo revenues to net profit and from ancillary revenues to net profit. The study also indicated a positive correlation between cargo revenues and ancillary revenues and net profit. In other words, cargo revenues and ancillary revenues have a positive effect on the net profit of airline companies. In addition, the study found that aviation ancillary revenues provide an important resource for airline companies; furthermore, two US companies are among the top three companies with the highest revenues in the world in terms of cargo and ancillary revenues; also showed that Turkish Airlines' ancillary revenues are lower than those of these two US companies. On the other hand, the study showed that the contribution of Turkish Airlines cargo revenues to net profit is much higher than the other two companies.

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“…Several studies support the positive correlation between the implementation of environmental, social, and governance (ESG) reporting and the firm value and financial performance of airlines. Abdi et al (2022) demonstrated that, while ESG activities may reduce airlines' short-term financial performance, they can have a significant positive impact on their overall financial performance. Kuo et al (2021) reached the same conclusion by analyzing 30 airline companies worldwide for five years.…”

Section: Improved Firm Value and Financial Performancementioning

confidence: 99%

Why ESG Reporting is Particularly Important for the Airlines during the Covid-19 Pandemic

Paraschi

2022

JBMS

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The concept of environment, society, and governance (ESG) performance is gaining momentum in all business sectors as the global economic system recognises the importance of sustainability. The airline industry has several incentives to apply ESG initiatives and report the related results. The literature has established positive links between noble ESG scores and priority access to funding, better compliance with regulatory requirements, increased customer loyalty, and employee productivity, and improved firm value and financial performance. Although adherence to ESG goals may seem contradictive to tremendous cost reduction pressures posed to airlines due to the covid-19 pandemic, literature also argues that ESG can play a vital role in the post-covid-19 world as ESG can alleviate airlines’ financial risks. The aim of this short paper is to raise awareness among aviation practitioners and policymakers on the importance of ESG application and reporting as a means to strengthen business resilience and mitigate the adverse impact of the covid-19 pandemic and future crises that challenge the airline industry.

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Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age

Cited by 161 publications

References 83 publications

Analysis of the Main Corporate Social Responsibility Drivers and Barriers and Their Foreseeable Evolution—Evidence from Two Leading Multinationals: The Airbus and TASL Cases

Analysis of the Main Corporate Social Responsibility Drivers and Barriers and Their Foreseeable Evolution—Evidence from Two Leading Multinationals: The Airbus and TASL Cases

Examining the impact of cargo and ancillary revenues on net profit for full service carrier airlines

Why ESG Reporting is Particularly Important for the Airlines during the Covid-19 Pandemic

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