Does the IFRS16 Matter in Determining the Profitability of Airline Industries?

The purpose of this study is to reveal the effect of IFRS 16 Leases implementation on the profitability of airline companies all over the world. The research is based on the panel data statistics of 357 airline companies in 59 countries all over the world. The time period used is seven years between 2013 and 2019 for all variables. The findings support the goal of the International Accounting Standards Board to improve the transparency of financial statements and provide the users of financial statements with more credible and comparative financial information and figures. The results of the study indicate that off-balance sheet leases capitalization due to IFRS 16 provides more relevant information than IAS 17. As it was expected, the solvency ratio has an insignificant impact on return on equity. Additionally, the positive significant impact of the share price on the company's profitability was revealed. The results indicate that in 2019 there was a decrease in the profitability of the firms. However, it is suggested that such numbers were obtained due to global macroeconomic factors such as COVID-19 pandemics or severe oil price fluctuations that influence the world economy and specifically the airline industry. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

Do changes in earnings signal future prospects after the global financial crisis and emergence of COVID-19? Evidence from Kazakhstan

This study presents an attempt to examine the reaction of stock prices of selected Kazakhstani firms to the announcement of quarterly earnings increase or decrease between 2012 and 2020 which includes the year of the post-global financial crisis as well as the year marked by the emergence of the virus which hit economies around the world. The event study methodology was applied to seven firms listed on KASE, with estimation and post-estimation windows of 200 and 40 days, respectively between 2012 and 2020. OLS regression was utilised to test the relationship between earnings announcements and stock returns. The findings of this study demonstrate a positive statistically significant price reaction on the next day following the announcement event when considering aggregate returns for a total of 50 earnings events of the sample period. Though, the magnitude and direction of average abnormal returns (AARs) vary when each year is considered separately. Copyright © 2023 Inderscience Enterprises Ltd.