Large Losses, Risk Management and Stock Returns in the Airline Industry

Davidson, Wallace N.; Chandy, P. R.; Cross, Mark L.

doi:10.2307/252888

Cited by 62 publications

(44 citation statements)

References 11 publications

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“…Contrary to negative relationships found in few past studies (Davidson and Worell, 1988;Davidson et al, 1987), this study establishes positive relationships between the aggregate and segregate dimensions of CSR and firm performance. The negative results of past studies are mostly attributed to the use of volatile market-based measures such as stock returns (Griffin and Mahon, 1997).…”

contrasting

confidence: 83%

Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?

2010

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ABSTRACT. This study examines whether corporate social responsibility (CSR) towards primary stakeholders influences the financial and the non-financial performance (NFP) of Indian firms. Perceptual data on CSR and NFP were collected from 150 senior-level Indian managers including CEOs through questionnaire survey. Hard data on financial performance (FP) of the companies were obtained from secondary sources. A questionnaire for assessing CSR was developed with respect to six stakeholder groups -employees, customers, investors, community, natural environment, and suppliers. A composite measure of CSR was obtained by aggregating the six dimensions. Findings indicate that stock-listed firms show responsible business practices and better FP than the non-stock-listed firms. Controlling confounding effects of stock-listing, ownership, and firm size, a favorable perception of managers towards CSR is found to be associated with increase in FP and NFP of firms. Such findings hold good when CSR is assessed for the six stakeholder groups in aggregate and for each stakeholder group in segregate. Findings suggest that responsible business practices towards primary stakeholders can be profitable and beneficial to Indian firms.

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contrasting

confidence: 83%

Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?

2010

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“…An event study is widely applied to determine whether there has been any information effect on the stock performance around the announcement date in different events (Davidson et al 1987;Rajiv et al 1993;Bradford, Robinson 1997;Patten, Nance 1998;Pantzalis et al 2000;Chen, Su 2010;Lai et al 2010;Ramiah et al 2010;Asgharian et al 2011;Cheung 2011;Li, Tallman 2011;Ramchander et al 2012). Recent literature used event study to measure the effect of specific events, such as the effect of the Alaskan oil spill on the stock performance of petroleum companies and the effect of war on the stock performance of transportation companies.…”

Section: Event Studymentioning

confidence: 99%

An Investor's Perspective on Infectious Diseases and Their Influence on Market Behavior

Wang

Yang

Chen

2013

Journal of Business Economics and Management

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Abstract.Recently, increasing number of infectious diseases has swept the world. The outbreak of a contagious disease not only affects the health and lives of people but also causes economic growth to stagnate. Business in the biotechnology industry is closely related to infectious diseases but what exactly is the information value of the outbreak of infectious disease on biotechnology? This study investigates how such outbreaks can affect the performance of biotechnology stocks. In the past 10 years, major statutory infectious diseases in Taiwan have included ENTEROVIRUS 71, DENGUE FEVER, SARS and H1N1. The empirical results indicate that there is a significant abnormal return on company shares in Taiwan's biotechnology industry because of statutory infectious epidemics. The relationship between the financial ratios of biotechnology companies and abnormal returns was analyzed as part of this research. The results show that the influence on R&D ratios, current ratios and assets are significant. Empirical findings reveal that the investors rationally measure operating conditions of the biotechnology companies during outbreaks of major infectious disease and adjust portfolio allocation accordingly.

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“…Some researchers have reported positive linkages (Wu, 2006;Allouche & Laroche, 2005;De Bakker & den Hond, 2005;Margolis & Walsh, 2003;Orlitzky, Schmidt, & Rynes, 2003;Roman et al, 1999;Johnson & Greening, 1999;Berman, Wicks, & Jones, 1999;Turban & Greening, 1997;Preston & O'Bannon, 1997;Waddock & Graves, 1997;Raihi-Belkaoui, 1992), while others have reported negative linkages (Bromiley & Marcus, 1989;Davidson, Chandy, & Cross, 1987;Davidson & Worrell, 1988). Still others have found no significant linkages between CSR initiatives and financial performance (Freedman & Jaggi, 1982;Aupperle et al, 1985).…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Social Responsibility and Financial Performance: A Snapshot from the Lodging and Gaming Industries

Jackson

Hua

2009

The Journal of Hospitality Financial Management

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This study examines the relationship between corporate social responsibility (CSR) and financial performance for a sample of lodging and gaming companies. The study attempts to answer the question: do lodging and gaming companies ranked highly on CSR initiatives outperform their counterparts that are not highly ranked? The study utilizes data of publicly traded U.S. hospitality firms obtained from the CRSP and Mergent databases. The study also uses the Fortune CSR ranking survey for hotels and casinos. The findings suggest that lodging and gaming firms with well-executed CSR initiatives have higher profit margins and higher return on equity than the rest of the sampled firms.

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Large Losses, Risk Management and Stock Returns in the Airline Industry

Cited by 62 publications

References 11 publications

Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?

Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?

An Investor's Perspective on Infectious Diseases and Their Influence on Market Behavior

Corporate Social Responsibility and Financial Performance: A Snapshot from the Lodging and Gaming Industries

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