COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY
The aim of this study is to investigate which financial variables increases or decreases the risk of the bankruptcy of airlines during periods of crisis when there is a possibility of financial distress. In this study, financial variables that affect financial distress in airlines and the possibilit...
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| Format: | Article |
| Language: | English |
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Mehmet Akif Ersoy University
2021-11-01
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| Series: | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
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| Online Access: | https://dergipark.org.tr/en/download/article-file/1691822 |
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| author | Kasım Kiracı |
| author_facet | Kasım Kiracı |
| author_sort | Kasım Kiracı |
| collection | DOAJ |
| description | The aim of this study is to investigate which financial variables increases or decreases the risk of the bankruptcy of airlines during periods of crisis when there is a possibility of financial distress. In this study, financial variables that affect financial distress in airlines and the possibility of bankruptcy were analyzed. In the framework of the study, the financial data from 35 airlines were examined. We employed the Altman (1968) Z-score, Springate (1978) S-score and Zmijewski (1984) J-score financial distress prediction models. The findings indicate that in times of crisis, when the probability of financial distress and bankruptcy increases (such as with Covid-19), leverage level, asset structure, firm size, firm profitability and liquidity ratio have a significant effect on an airline’s probability of bankruptcy score. |
| format | Article |
| id | doaj-art-64e8152ba3884676b0b16847cc5dbde3 |
| institution | Kabale University |
| issn | 2149-1658 |
| language | English |
| publishDate | 2021-11-01 |
| publisher | Mehmet Akif Ersoy University |
| record_format | Article |
| series | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
| spelling | doaj-art-64e8152ba3884676b0b16847cc5dbde32025-01-27T14:05:29ZengMehmet Akif Ersoy UniversityMehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi2149-16582021-11-01831557158110.30798/makuiibf.911548273COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRYKasım Kiracı0https://orcid.org/0000-0002-2061-171XİSKENDERUN TEKNİK ÜNİVERSİTESİThe aim of this study is to investigate which financial variables increases or decreases the risk of the bankruptcy of airlines during periods of crisis when there is a possibility of financial distress. In this study, financial variables that affect financial distress in airlines and the possibility of bankruptcy were analyzed. In the framework of the study, the financial data from 35 airlines were examined. We employed the Altman (1968) Z-score, Springate (1978) S-score and Zmijewski (1984) J-score financial distress prediction models. The findings indicate that in times of crisis, when the probability of financial distress and bankruptcy increases (such as with Covid-19), leverage level, asset structure, firm size, firm profitability and liquidity ratio have a significant effect on an airline’s probability of bankruptcy score.https://dergipark.org.tr/en/download/article-file/1691822finansal riskhavayolu sektörüfinansal sıkıntı tahmin modellerifinancial riskairline industryfinancial distress prediction models |
| spellingShingle | Kasım Kiracı COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi finansal risk havayolu sektörü finansal sıkıntı tahmin modelleri financial risk airline industry financial distress prediction models |
| title | COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY |
| title_full | COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY |
| title_fullStr | COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY |
| title_full_unstemmed | COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY |
| title_short | COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY |
| title_sort | covid 19 financial risk and the airline industry |
| topic | finansal risk havayolu sektörü finansal sıkıntı tahmin modelleri financial risk airline industry financial distress prediction models |
| url | https://dergipark.org.tr/en/download/article-file/1691822 |
| work_keys_str_mv | AT kasımkiracı covid19financialriskandtheairlineindustry |