CSR Disclosure and Governance Mechanisms on Asian Airline Financial Distress
DOI:
https://doi.org/10.71417/j-sime.v3i2.2263Keywords:
CSR Disclosure, Financial Distress, Corporate Governance, Airlines, Altman Z-ScoreAbstract
This study examines the effect of Corporate Social Responsibility (CSR) Disclosure and Good Corporate Governance (GCG) mechanisms on financial distress among Asian airlines, an industry whose capital-intensive structure and post-pandemic recovery pressures have heightened concerns over long-term financial stability. Using a quantitative explanatory design, the study analyzes a balanced panel of 17 listed Asian airlines from ten countries over the 2020–2024 period, yielding 85 firm-year observations. Financial distress is measured using the Altman Z''-Score, CSR Disclosure through a content-analysis index adapted from Raar (2002), and GCG through institutional ownership, managerial ownership, independent commissioners, and audit committee, with firm size and firm age as control variables. Data were analyzed using panel data regression with a Fixed Effect Model, selected through the Chow and Hausman tests. The results show that CSR Disclosure does not significantly reduce financial distress, whereas among the GCG proxies, only the audit committee has a significant negative effect. These findings imply that, in a post-pandemic recovery context, structural governance oversight matters more than voluntary sustainability disclosure in safeguarding airline financial stability, offering guidance for governance-focused regulatory and managerial policy.
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