Title: CSR and financial performance in the airline industry: moderating effects of the airline type, government ownership and COVID-19

Authors: Assem Orazayeva; Muhammad Arslan

Addresses: Bang College of Business, KIMEP University, Abay Ave. 2, Almaty, 050010, Kazakhstan ' Bang College of Business, KIMEP University, Abay Ave. 2, Almaty, 050010, Kazakhstan

Abstract: This study examines the relationship between financial performance and CSR. Drawing on a sample of 33 airlines for the period of 2016-2020, the study addresses the arduous situation which the airline industry is currently facing, by examining two critical aspects that are mounting in today's dynamic environment, namely airlines' financial performance and CSR. The airline industry is one of several industries which are affected due to COVID-19. The study not only draws its sample from recent years, but it also contributes to the existing literature by examining the effect of three moderating variables (i.e., airline type, presence of government ownership, and years of downturn) on the CSR-financial performance relationship. The findings indicate that CSR has no significant impact on financial performance in the airline industry, even after the addition of moderating variables. Our findings suggest that CSR activities are not perceived by the market as value-additive and do not contribute to the airline's profitability. This could be attributed to specifics of the industry, which is characterised by high competition and price sensitivity.

Keywords: CSR; financial performance; COVID-19; airline type; aviation industry; ownership.

DOI: 10.1504/IJEF.2022.124481

International Journal of Electronic Finance, 2022 Vol.11 No.3, pp.219 - 235

Received: 10 Nov 2021
Accepted: 02 Feb 2022
Published online: 27 Jul 2022 *

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