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| Yao Xie, Sang Baum Kang and Jialin Zhao |
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| ''ESG practices and corporate financial performance: Evidence from the airline industry during the Russian-Ukrainian war'' |
| ( 2025, Vol. 0 No.0 ) |
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| This paper investigates the impact of Environmental, Social, and Governance (ESG) performance on airlines' financial outcomes during the Russian–Ukrainian war, employing a Difference-in-Differences (DiD) approach. We focus on the airline industry due to its competitiveness and pronounced exposure to geopolitical risks. Our DiD analysis reveals that European airlines, which are more directly affected by the conflict, experienced significantly greater post-war losses than their non-European counterparts. However, firms with higher ESG scores exhibited stronger resilience, mitigating the war's adverse effects. These findings offer novel evidence that robust ESG practices can help firms and investors navigate non-hedgeable geopolitical crises. |
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| Keywords: ESG, Corporate Financial Performance, Financial Risk Management, Difference-in-Differences method, Russian-Ukraine War |
JEL: G3 - Corporate Finance and Governance: General
L9 - Industry Studies: Transportation and Utilities: General |
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| Manuscript Received : Apr 03 2025 | | Manuscript Accepted : Oct 16 2025 |
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