Document Type
Honors Thesis
Abstract
Although the effect of improvements in non-financial measures (NFMs) of performance on the financial performance of companies is still not fully understood, research has indicated that there is a positive relationship between NFMs and the financial performance of airlines. The Department of Transportation (DOT) mandates that some non-financial measures of airline performance, like the percentage of on-time arrivals of flights, be disclosed. Collecting and disseminating this information is not costless. Therefore, it is important to determine whether airlines respond to these disclosures. In this research paper, we investigate this issue, by examining whether airlines ranked lower by the DOT in one period report improved results in the subsequent period, and whether such changes have any value implications. Airlines that are considered “poor” performing initially improve their subsequent performance in response to lower rankings as disclosed by mandated DOT disclosures. However, the rate of improvement decreases over time. In general, all airlines report deteriorating performance on all non-financial measures with the passage of time.
Publication Date
5-1-2018
Language
English
License
This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 4.0 International License.
Recommended Citation
Chelawat, Sanjari, "AIRLINE RESPONSES TO MANDATED NON-FINANCIAL PERFORMANCE DISCLOSURES" (2018). 2018 Spring Honors Capstone Projects. 12.
https://mavmatrix.uta.edu/honors_spring2018/12