Environmental social governance and financial performance in the air transport industry

• Autores: Yaghoub Abdi, Xiaoni Li, Xavier Cámara Turull
• Localización: Gestión empresarial y objetivos de desarrollo sostenible (Reus): XXXIV Congreso anual AEDEM / coord. por Ana Beatriz Hernández Lara, M. Glòria Barberà Mariné, 2020, ISBN 978-84-09-23093-8, págs. 307-322
• Idioma: español
• Texto completo no disponible (Saber más ...)
• Resumen

  • Air transport has been subjected to implement environmental, social and governance (ESG) scores in recent decades where it is regarded as a challenging industry in term of environmental impacts and contribution to the global climate change through burning fossil fuels and releasing pollutant gases into the atmosphere. However, launching these ecofriendly standards have implications on airlines’ financial performance. This paper aims to evaluate the impact of ESG pillar scores on financial performance among the set of airlines through the panel data analysis. We develop hypothesis and test it by applying linear regression with a panel data retrieved from Thomson Reuters Eikon database for the sample of 27 airlines world-wide in years 2013-2019. Findings of this study support the strong positive relationship between environmental (Env) and governance (Gov) pillar scores, with Tobin’s Q as proxy of firms’ performance. This finding imply that increase in both pillars leads to higher financial efficiency for airlines. Therefore, airlines effort to improve Env and Gov dimensions will lead to higher return on invested funds. In contrast, social pillar is found to have a significant negative association with the dependent variable showing that airline’s social activities result in lower level of performance.