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Exploring CSR and financial performance of full-service and low-cost air carriers


  • Yang, Ann Shawing
  • Baasandorj, Suvd


We analyze the influence of corporate social responsibility (CSR) toward the financial performance of low-cost (LCC) and full-service air carriers (FSC). The fixed-effect model of panel data analysis is applied for the study period from 2006 to 2015. FSCs improve financial performance via environmental and social CSR activities; compared to LCCs via increased firm size and environmental CSR activities. Firm age significant negatively influences LCCs, whereas leverage shows mixed significant influence toward FSCs. CSR increases current and expected financial performances for FSCs and LCCs, respectively. FSCs and LCCs, with further environmental participation, could increase CSR scores and enhance financial performance.

Suggested Citation

  • Yang, Ann Shawing & Baasandorj, Suvd, 2017. "Exploring CSR and financial performance of full-service and low-cost air carriers," Finance Research Letters, Elsevier, vol. 23(C), pages 291-299.
  • Handle: RePEc:eee:finlet:v:23:y:2017:i:c:p:291-299
    DOI: 10.1016/

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    References listed on IDEAS

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    More about this item


    Corporate social responsibility; Financial performance; Full-service air carrier; Low-cost air carrier; International aviation industry;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility


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