Innovations and firm performance: a study of the global airline industry

IF 1.2 Q3 BUSINESS, FINANCE

International Journal of Managerial and Financial Accounting Pub Date : 2021-01-01 DOI:10.1504/ijmfa.2021.10044562

M. Avvari, M. Rashid, J. Ramachandran

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引用次数: 0

Abstract

The International Air Transport Association (IATA) reports that the impact of COVID-19 translates into a $630 billion reduction in tourism and travel related GDP and over 26 million job loss. This study examines how innovation influences company performance within the global airline industry covering the periods 2000 to 2020. Several fixed and random effect models and system-GMM approaches were employed. The findings indicate that higher investment in innovation helps increase profit margin and return on equity but reduces return on assets. Higher return from product development expenses (higher product development expenses) increases (decreases) profitability and efficiency of the company. Also, higher product development expense and profitability nexus indicates that companies may have to rely heavily on internal capital while financing for research and development (R&D). While national bailouts, mergers, climate change related sustainability agendas will be issues as airlines get back on slowly with the gradual opening of economies and vaccine miracle, the findings reported in this paper will bear significant policy implications for the sector overall.

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创新与企业绩效:全球航空业研究

国际航空运输协会(IATA)报告称，2019冠状病毒病的影响导致旅游业和与旅游相关的GDP减少6300亿美元，失业2600多万人。本研究考察了2000年至2020年期间全球航空业的创新如何影响公司绩效。采用了几种固定和随机效应模型以及系统- gmm方法。研究结果表明，加大创新投入有助于提高企业的利润率和净资产收益率，但会降低企业的资产收益率。较高的产品开发费用回报(较高的产品开发费用)增加(降低)了公司的盈利能力和效率。此外，较高的产品开发费用和盈利关系表明，公司在研发融资时可能不得不严重依赖内部资本。虽然随着经济的逐步开放和疫苗奇迹的出现，航空公司将慢慢恢复，国家救助、合并、与气候变化相关的可持续性议程将成为问题，但本文报告的研究结果将对整个行业产生重大的政策影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Managerial and Financial Accounting BUSINESS, FINANCE-

CiteScore

2.10

自引率

7.10%

发文量

期刊介绍： IJMFA covers all aspects of managerial and financial accounting. The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organisation, while financial accounting is aimed at providing information to external parties. In today''s advanced manufacturing environment, various issues arise for accounting standard-setting practicing professionals. Solving the separate issues of managerial and financial accounting is a significant challenge, and IJMFA assists researchers in overcoming these challenges in an efficient, effective manner.