7. Do the Companies Benefit from Improved Disclosure Performance? Evidence from the Airport Industry

The chapter investigates the relationship between Environmental, Social, and Governance (ESG) disclosure performance and financial outcomes in the airport industry. Using a dataset spanning 20 publicly traded airport companies from 2007 to 2017, the study reveals that higher ESG disclosure scores are associated with increased profitability and higher market valuation. The research employs various regression models to control for factors such as financial leverage, size, and growth, demonstrating that ESG disclosure performance is a significant determinant of financial success. The findings have practical implications for airport managers, suggesting that enhanced ESG disclosure can lead to better financial performance. This chapter contributes to the broader understanding of the impact of ESG practices on corporate financial health, particularly in the aviation sector.