Articles producció científica> Gestió d'Empreses

Impact of sustainability on financial distress in the air transport industry: the moderating effect of Asia–Pacific

  • Dades identificatives

    Identificador: imarina:9327718
    Autors:
    Shi, YLi, XNAsal, M
    Resum:
    The tremendous impact of the coronavirus pandemic on the global aviation industry has led to many cases of airline financial distress and bankruptcy. The Asia–Pacific region (APAC) contains more than half of the world’s population, and its airlines had the highest profit margin of any region. In this study, we investigate whether corporate sustainability practice can reduce the financial distress risk of air carriers, and, if so, what would the effect be in APAC? We first examine the relationship between environmental, social, and governance disclosure and the likelihood of financial distress of airlines as measured by the Altman Z″-score. Second, we analyze the moderating role of being an APAC airline in this relationship. The findings support the claim that implementing environmental actions may increase financial distress risk, and by improving social and governance activities, airlines can mitigate the risk of financial distress. The negative influence of the environmental pillar and the positive influence of the social pillar can be smaller for APAC airlines. Our study provides empirical evidence of the influence of environmental, social, and governance (ESG) on the likelihood of financial distress in the airline industry. Moreover, we analyze the moderating role of being an APAC airline in the relationship between sustainability and financial distress. This study has significant implications for executives, managers, and policymakers in the aviation industry on ESG strategy decisions and the general issue of sustainability.
  • Altres:

    Autor segons l'article: Shi, Y; Li, XN; Asal, M
    Departament: Gestió d'Empreses
    Autor/s de la URV: Li, Xiaoni / Shi, Yin
    Paraules clau: Sustainability Financial distress Environmental, social, and governance (esg) score Corporate social responsibility (csr) Altman z-score Airline industry
    Resum: The tremendous impact of the coronavirus pandemic on the global aviation industry has led to many cases of airline financial distress and bankruptcy. The Asia–Pacific region (APAC) contains more than half of the world’s population, and its airlines had the highest profit margin of any region. In this study, we investigate whether corporate sustainability practice can reduce the financial distress risk of air carriers, and, if so, what would the effect be in APAC? We first examine the relationship between environmental, social, and governance disclosure and the likelihood of financial distress of airlines as measured by the Altman Z″-score. Second, we analyze the moderating role of being an APAC airline in this relationship. The findings support the claim that implementing environmental actions may increase financial distress risk, and by improving social and governance activities, airlines can mitigate the risk of financial distress. The negative influence of the environmental pillar and the positive influence of the social pillar can be smaller for APAC airlines. Our study provides empirical evidence of the influence of environmental, social, and governance (ESG) on the likelihood of financial distress in the airline industry. Moreover, we analyze the moderating role of being an APAC airline in the relationship between sustainability and financial distress. This study has significant implications for executives, managers, and policymakers in the aviation industry on ESG strategy decisions and the general issue of sustainability.
    Àrees temàtiques: Social sciences, mathematical methods Management of technology and innovation Finance Engenharias iii Ciencias sociales Business, finance
    Accès a la llicència d'ús: https://creativecommons.org/licenses/by/3.0/es/
    Adreça de correu electrònic de l'autor: yin.shi@estudiants.urv.cat xiaoni.li@urv.cat
    Identificador de l'autor: 0000-0001-6354-5399 0000-0002-4047-4046
    Data d'alta del registre: 2024-08-03
    Versió de l'article dipositat: info:eu-repo/semantics/publishedVersion
    URL Document de llicència: https://repositori.urv.cat/ca/proteccio-de-dades/
    Referència a l'article segons font original: Financial Innovation. 9 (1):
    Referència de l'ítem segons les normes APA: Shi, Y; Li, XN; Asal, M (2023). Impact of sustainability on financial distress in the air transport industry: the moderating effect of Asia–Pacific. Financial Innovation, 9(1), -. DOI: 10.1186/s40854-023-00506-1
    DOI de l'article: 10.1186/s40854-023-00506-1
    Entitat: Universitat Rovira i Virgili
    Any de publicació de la revista: 2023
    Tipus de publicació: Journal Publications
  • Paraules clau:

    Business, Finance,Finance,Management of Technology and Innovation,Social Sciences, Mathematical Methods
    Sustainability
    Financial distress
    Environmental, social, and governance (esg) score
    Corporate social responsibility (csr)
    Altman z-score
    Airline industry
    Social sciences, mathematical methods
    Management of technology and innovation
    Finance
    Engenharias iii
    Ciencias sociales
    Business, finance
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