The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance

There are two key objectives to this research. Firstly, it seeks to illustrate through four case studies how full-service carriers and low-cost carriers capitalise on their value drivers to strengthen firm performance. The subsequent objective is to explore the relationship between the capital struc...

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Main Author: Arulampalam, Jeeva
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26338/
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author Arulampalam, Jeeva
author_facet Arulampalam, Jeeva
author_sort Arulampalam, Jeeva
building Nottingham Research Data Repository
collection Online Access
description There are two key objectives to this research. Firstly, it seeks to illustrate through four case studies how full-service carriers and low-cost carriers capitalise on their value drivers to strengthen firm performance. The subsequent objective is to explore the relationship between the capital structure and performance of airline companies. Based on a sample of 52 airlines spread throughout the globe, a correlation analysis was carried out using performance measures [return on equity (ROE), return on assets (ROA), and return on invested capital (ROIC)] and capital structure measures [debt ratio, debt-to-equity (D/E), long-term debt over total assets (LTDA) and Short-term debt over total assets (STDA)]. The results showed that there is a negative relationship between capital structure and firm‟s performance. However, the only significantly negative relationships exist between debt ratio, LTDA and STDA with dependent variable ROIC. The other significantly negative relationship is between debt ratio and ROA.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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spelling nottingham-263382017-10-19T14:18:03Z https://eprints.nottingham.ac.uk/26338/ The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance Arulampalam, Jeeva There are two key objectives to this research. Firstly, it seeks to illustrate through four case studies how full-service carriers and low-cost carriers capitalise on their value drivers to strengthen firm performance. The subsequent objective is to explore the relationship between the capital structure and performance of airline companies. Based on a sample of 52 airlines spread throughout the globe, a correlation analysis was carried out using performance measures [return on equity (ROE), return on assets (ROA), and return on invested capital (ROIC)] and capital structure measures [debt ratio, debt-to-equity (D/E), long-term debt over total assets (LTDA) and Short-term debt over total assets (STDA)]. The results showed that there is a negative relationship between capital structure and firm‟s performance. However, the only significantly negative relationships exist between debt ratio, LTDA and STDA with dependent variable ROIC. The other significantly negative relationship is between debt ratio and ROA. 2013 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26338/1/JeevaArulampalam.pdf Arulampalam, Jeeva (2013) The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Arulampalam, Jeeva
The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance
title The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance
title_full The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance
title_fullStr The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance
title_full_unstemmed The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance
title_short The Airline Industry: A Review of its Value Drivers and the Correlation between Capital Structure and Firm Performance
title_sort airline industry: a review of its value drivers and the correlation between capital structure and firm performance
url https://eprints.nottingham.ac.uk/26338/