Understanding reputational disaster during economic crises: Evaluating aviation sector response differentials
研究了声誉事件对航空公司财务绩效的影响，发现高严重性和新事件在衰退期导致更差的回报和更高的波动，且环境类声誉损害影响小于社会与治理类，行业内存在传染效应。
This research investigates the impact of reputational events on the financial performance of airlines, with a particular focus on differential behaviour regarding the types of events—environmental, social, and governance (ESG), and the economic cycle, whether recessionary or expansionary. Based on a sample of 6288 events, our findings reveal a distinct pattern of depressed returns and increased variance in the aftermath of high severity and novel reputational events—more pronounced during periods of domestic economic crisis. Interestingly, our results show that reputational damage tied to environmental issues does not carry the same weight as those in social and governance categories. Further, contagion effects are identified within the industry, with significant spillovers observed during periods of stability and crisis. This research holds important implications for corporate reputation management, ESG investing, and regulatory policy, underlining the need for transparent communication and stringent oversight across the aviation industry.