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Journals / Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty / 2021 / Cilt: 8 Sayı: 3

COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY

KOVID-19, FİNANSAL RİSK VE HAVAYOLU SEKTÖRÜ

Kasım KİRACI
Pages
1557–1581
Publication Date
2021-11-30
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

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.

📌 3 Key Takeaways

🎯
Objective & Hypothesis: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.
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Key Findings & Data:In the framework of the study, the financial data from 35 airlines were examined.
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Conclusion & Impact: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.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Finansal Risk · Havayolu Sektörü · Finansal Sıkıntı Tahmin Modelleri

Abstract

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.

Özet

Bu çalışmanın amacı, finansal sıkıntı olasılığının olduğu kriz dönemlerinde, havayollarının iflas riskini artıran veya azaltan finansal değişkenlerin araştırılmasıdır. Bu çalışmada, havayollarında finansal sıkıntıyı veya iflas olasılığını etkileyen finansal değişkenler incelenmiştir. Çalışma kapsamında 35 havayolunun finansal verileri incelenmiştir. Altman (1968) Z-skor, Springate (1978) S-skor ve Zmijewski (1984) J-skor finansal sıkıntı tahmin modellerinden yararlanılmıştır. Bulgular, kriz zamanlarında diğer bir ifadeyle finansal sıkıntı ve iflas olasılığının arttığı durumlarda (Covid-19 gibi), kaldıraç seviyesi, varlık yapısı, firma büyüklüğü, firma karlılığı ve likidite oranının havayolu finansal sıkıntı veya iflas olasılığını önemli ölçüde etkilediğini göstermektedir.

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Cite This Article

KİRACI, K. (2021). COVID-19, FINANCIAL RISK AND THE AIRLINE INDUSTRY. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty, Cilt: 8 Sayı: 3, 1557–1581. https://ajindex.com/articles/966708

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