The Market Value of Airline Sustainability Initiatives An Event Study Approach
Type
conference contribution
Date Issued
2023-07-01
Author(s)
Abstract
Air travel is increasingly stigmatized for its proportionally high emission of greenhouse gases. This development has turned sustainability into an issue of strategic importance for airlines, resulting in the launch of several high-profile sustainability initiatives. To quantify the value of these undertakings and gauge the perception of investors, this paper investigates whether unanticipated announcements of sustainability initiatives have an impact on the market value of listed airlines. Building on theoretical deliberations and a semi-systematic literature review, financial multi-country event studies are performed. The results show that announcements of holistic sustainability strategies and initiatives by airlines don't generate an abnormal return. Thus, the hypothesis of a positive market value impact is rejected. The conducted event studies add a new research approach to the existing airline industry specific literature on the value and financial performance impact of corporate sustainability. This approach distinguishes itself from prior investigations by forgoing the use of accounting-based figures to measure corporate performance and avoiding the reliance on externally provided ratings to quantify sustainability engagement.
Language
English (United States)
Keywords
Airline
Sustainability
Event Study
Market Value
Subject(s)
Division(s)
File(s)![Thumbnail Image]()
Name
16_Gebler & Wittmer.pdf
Size
431.65 KB
Format
Adobe PDF
Checksum (MD5)
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