Oil price and profitability: evidence from Southeast Asian countries
by Aslan Tleugaliyev; Alimshan Faizulayev; Muhammad Arslan
International Journal of Electronic Finance (IJEF), Vol. 14, No. 1, 2025

Abstract: The paper explores the influence of macroeconomic variables on the profitability of the aviation sector in the Southeast Asia region. The panel corrected standard errors (PCSE) regression model was employed for the period 2011-2019 on a sample of six countries (i.e., Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam). The results revealed the positive effect of an increase in inflation whereas increases in government expenditure, lending, interest rate, profit tax, and the 2014 year associated with the decline in global oil prices, exert a statistically negative influence on the financial performance of the aviation sector in Southeast Asia region. The effect of changes in oil prices and population growth, 2015-2016 years as the continuation of global oil prices decreases, is statistically insignificant. The paper contributes to the understanding of important economic factors affecting the financial performance of the aviation industry in Southeast Asian countries in light of the COVID-19 outbreak and for further development of the economic sector.

Online publication date: Wed, 11-Dec-2024

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Electronic Finance (IJEF):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com