The Impact of Sustainability Practices on the Going Concern of the Travel and Tourism Industry: Evidence from Developed and Developing Countries

Nagalingam Nagendrakumar (), Kalubowilage Navodya Nilupulee Alwis, Udage Arachchige Kaveesha Eshani and Seekku Baduge Ushani Kaushalya
Additional contact information
Nagalingam Nagendrakumar: Business School, Sri Lanka Institute of Information Technology, New Kandy Rd., Malabe 10115, Sri Lanka
Kalubowilage Navodya Nilupulee Alwis: Business School, Sri Lanka Institute of Information Technology, New Kandy Rd., Malabe 10115, Sri Lanka
Udage Arachchige Kaveesha Eshani: Business School, Sri Lanka Institute of Information Technology, New Kandy Rd., Malabe 10115, Sri Lanka
Seekku Baduge Ushani Kaushalya: Business School, Sri Lanka Institute of Information Technology, New Kandy Rd., Malabe 10115, Sri Lanka

Sustainability, 2022, vol. 14, issue 24, 1-21

Abstract: Sustainability refers to the evaluation and communication of quantitative and qualitative information of the sustainability performance of a business in a balanced way regarding the environment and the society in which it operates. Companies are responsible for stakeholders’ justification and disclosure expenses consisting of dedicated sustainability practices, thereby strengthening the company’s financial performance. However, due to the deficiency of consistent information and a lack of transparency in corporate reporting, tourism industries fail to realize the association between sustainability practices and financial performance. Moreover, there is a lack of literature that deals with the impact of macro-level sustainability factors on firms’ financial performances. Furthermore, linking the going concern concept and sustainable practices with financial performance through the Z -score model is not frequently done in the corporate world. Hence, this paper investigated the impact of macro-level sustainability practices on the going concern ability in developed and developing countries’ tourism industries for the 2016–2020 period, including a sample size of 138 listed companies, through panel data analysis. This study fills the empirical gap by adopting the Altman Z -score to analyze the financial performance related to sustainability practices in terms of environmental, economic, and social dimensions. The empirical results reveal that macro-level sustainability practices significantly impact the going concern from developed and developing countries’ perspectives.

Keywords: sustainability practices; going concern; financial performance; Altman Z -score model; tourism industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/24/17046/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/24/17046/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:24:p:17046-:d:1008313

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().