Impact of sustainability on financial distress in the air transport industry:the moderating effect of Asia–Pacific

The tremendous impact of the coronavirus pandemic on the global aviation industry has led to many cases of airline financial distress and bankruptcy.The Asia–Pacific region(APAC)contains more than half of the world’s population,and its airlines had the highest profit margin of any region.In this study,we investigate whether corporate sustainability practice can reduce the financial distress risk of air carriers,and,if so,what would the effect be in APAC?We first examine the relationship between environmental,social,and governance disclosure and the likelihood of financial distress of airlines as measured by the Altman Z″-score.Second,we analyze the moderating role of being an APAC airline in this relationship.The findings support the claim that implementing environmental actions may increase financial distress risk,and by improving social and governance activities,airlines can mitigate the risk of financial distress.The negative influence of the environmental pillar and the positive influence of the social pillar can be smaller for APAC airlines.Our study provides empirical evidence of the influence of environmental,social,and governance(ESG)on the likelihood of financial distress in the airline industry.Moreover,we analyze the moderating role of being an APAC airline in the relationship between sustainability and financial distress.This study has significant implications for executives,managers,and policymakers in the aviation industry on ESG strategy decisions and the general issue of sustainability.

Introducing Stakeholder-Based Frameworks for Post-merger Integration （PMI） Success

The importance of stakeholder relationship management for successful integration in post-merger management is not doubted. The establishment of a new powerful trend in investments produces strategic shifts in strategic management. Shareholder wealth maximization way of thinking is changing to stakeholder wealth maximization where a company＇s value management system is based not only on economic profit maximization, but also on environmental, social, and governance （ESG） maximization. There is especially a high need for a management system that can be used by mergers and acquisitions （M＆A） practitioners during integration process. There is a critical need for metrics which can trace the interests of all stakeholders, because to achieve success in integration, it is no longer acceptable for management to focus solely on the needs of one or two stakeholder groups. In this article, the authors have introduced two frameworks： sun cube and stakeholder relationship matrix. These tools can be useful in mergers and acquisitions （M＆A） process for conducting a stakeholder analysis.

Building a resilient future:collaborative sustainability regulation

The challenge of sustainability lies in achieving a balance between satisfying present needs and protecting resources for future generations with an emphasis on its three pillars-environmental,social and governance.This study explored sustainable development encompassing environmental,social and governance aspects along with sustainability reporting through various sustainability frameworks.A systematic review of literature for the period 2010-23 on major worldwide sustainability frameworks was conducted,by offering insights into enhancing reporting mechanisms for a sustainable future.Secondary data related to sustainability reports were obtained from the Sustainability Accounting Standards Board and International Integrated Reporting Council,which helped in examining sector and year variations across countries.The results reflected that mandatory sustainability disclosures help to meet the United Nations Sustainable Development Goals and global sustainability frameworks help to set standards,disseminate information and promote transparency.Collaboration of investment,company action and sustainability organizations can lead to a sustainable global economy.The adoption of sustainability reporting can help organizations by fostering a proper understanding of sustainability practices,improving transparency and identifying potential business opportunities in sectors with lower sustainability.The paper provided insights into sustainability reporting published across various countries in both advanced as well as emerging and developing economies.The analysis showed which sectors and time periods have had the most sustainability reports and which areas needed to be targeted for action to advance sustainable development.