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.

CSR and financial performance in the airline industry: moderating effects of the airline type, government ownership and COVID-19

This study examines the relationship between financial performance and CSR. Drawing on a sample of 33 airlines for the period of 2016–2020, the study addresses the arduous situation which the airline industry is currently facing, by examining two critical aspects that are mounting in today’s dynamic environment, namely airlines’ financial performance and CSR. The airline industry is one of several industries which are affected due to COVID-19. The study not only draws its sample from recent years, but it also contributes to the existing literature by examining the effect of three moderating variables (i.e., airline type, presence of government ownership, and years of downturn) on the CSR-financial performance relationship. The findings indicate that CSR has no significant impact on financial performance in the airline industry, even after the addition of moderating variables. Our findings suggest that CSR activities are not perceived by the market as value-additive and do not contribute to the airline’s profitability. This could be attributed to specifics of the industry, which is characterised by high competition and price sensitivity. Copyright © 2022 Inderscience Enterprises Ltd.