Financial Performance and Risk Management Strategies in Selected China Airlines: Basis for a Foreign Exchange Mitigation Framework

Authors

DOI:

https://doi.org/10.32996/jbms.2025.7.1.10

Keywords:

Airline, China, Exchange Rate, Financial Performance, Foreign Exchange Risk Response, Risk Management

Abstract

This study investigates the interplay between risk identification, exchange rate exposure, foreign exchange risk response, and financial performance in the airline industry in China. Using data from industry participants and employing structural equation modeling, the analysis reveals that risk identification significantly impacts financial performance by enabling proactive management of exchange rate volatility. Additionally, exchange rate exposure directly affects both foreign exchange risk responses and financial outcomes. The findings emphasize the importance of integrated risk management practices to enhance financial stability and operational efficiency. Implications for industry practices and future research directions are discussed.

Author Biographies

  • Emmanuel Paulino, Pamantasan ng Lungsod ng Maynila

    Emmanuel Paulino, DBA, LPT, (Corresponding Author) is a faculty member at different graduate schools in the Philippines.  He teaches research methods, statistics, and business analytics at Ateneo de Manila University, De La Salle University, University of the City of Manila, Jose Rizal University, and San Beda College Alabang.  He has already published research papers on management, marketing, finance, operations, analytics, and innovation using different statistical and analytics conventions. 

    De La Salle University Dasmarinas.  DBB-B 4115 West Ave., Dasmariñas, Cavite.  Email: eppaulino@dlsud.edu.ph; empauls@gmail.com,  ORCID: https://orcid.org/0000-0002-6282-6460

  • Luzviminda B. Landicho, Pamantasan ng Lungsod ng Maynila

    Luzviminda B. Landicho, MBA, CPA, is the vice president for finance at Pamantasan ng Lungsod ng Maynila.  With a robust career in academia and finance, Luzz  Landicho is an Assistant Professor III at PLM Business School. Pamantasan ng Lungsod ng Maynila (PLM), General Luna corner Muralla St., Intramuros Manila, Philippines 1002. Email: lblandicho@plm.edu.ph; ORCID: https://orcid.org/0009-0008-1439-4254

  • Ronald Romero, Pamantasan ng Lungsod ng Maynila

    Ronald P. Romero, Ph.D. is the vice president for academic affairs at the Pamantasan ng Lungsod ng Maynila (PLM) and is currently a faculty member in the graduate school program. He teaches thesis writing, dissertation writing, financial management, capital markets, risk management, operations management, business, and international economics. Pamantasan ng Lungsod ng Maynila (PLM), General Luna corner Muralla St., Intramuros Manila, Philippines 1002. Email: rpromero@plm.edu.ph, ORCID ID: https://orcid.org/0009-0009-9476-1831

  • Mazo Paulo Noel, Pamantasan ng Lungsod ng Maynila

    Paulo Noel A. Mazo, DBA, LPT, (Corresponding Author) is an esteemed academic currently serving as Assistant Professor III at the College of Business Administration in Pamantasan ng Lungsod ng Maynila (PLM). Email: pnamazo@plm.edu.ph, ORCID ID: https://orcid.org/0009-0001-0236-1542

  • Tan Ronaldo A., Pamantasan ng Lungsod ng Maynila
    Ronaldo A. Tan, Ph.D.  is the Vice President for Administration at the Pamantasan ng Lungsod ng Maynila and currently a faculty member in the graduate school program for engineering and information technology. He teaches software development tools and methodologies, Information Technology Industry Practices and Immersion, Advance IT Project Management, Seminar in Emerging Technology, Leadership in Information Technology, and IT Research. He received his Doctor of Technology at the Technological University of the Philippines, Manila and his Doctor of Philosophy in Education at Adamson University, Manila. Pamantasan ng Lungsod ng Maynila (PLM), General Luna corner Muralla Street Intramuros, Manila, Philippines 1002.  Email: ratan@plm.edu.ph ORCID ID: https://orcid.org/0000-0003-3697-2947

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Published

2025-02-01

Issue

Vol. 7 No. 1

Section

Research Article

License

Copyright (c) 2025 Journal of Business and Management Studies

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

Paulino, E., Landicho, L., Romero, R., Paulo Noel, M., Ronaldo A., T., & Hongli, W. (2025). Financial Performance and Risk Management Strategies in Selected China Airlines: Basis for a Foreign Exchange Mitigation Framework. Journal of Business and Management Studies, 7(1), 148-162. https://doi.org/10.32996/jbms.2025.7.1.10