Capital structure and firm performance
The privatisation and liberalisation waves have been increasing the number of private companies in the aviation industry. This, in turn, necessitates new policy analyses on major financial decisions regarding capital structure, corporate governance and investments. Among these major topics, the rese...
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| Format: | Article |
| Language: | English |
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TU Delft OPEN Publishing
2019-09-01
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| Series: | European Journal of Transport and Infrastructure Research |
| Online Access: | https://journals.open.tudelft.nl/ejtir/article/view/4384 |
| _version_ | 1797423328074399744 |
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| author | İsmail Çağrı Özcan |
| author_facet | İsmail Çağrı Özcan |
| author_sort | İsmail Çağrı Özcan |
| collection | DOAJ |
| description | The privatisation and liberalisation waves have been increasing the number of private companies in the aviation industry. This, in turn, necessitates new policy analyses on major financial decisions regarding capital structure, corporate governance and investments. Among these major topics, the research about the association between capital structure and financial performance of the aviation companies largely focuses on the airlines. But a comparable analysis for the airport companies is less explored. The goal of this study is to contribute to the literature by analysing how the capital structure of the publicly traded airport companies affects their profitability and market valuation. Using an unbalanced panel data sample of 29 publicly traded airports from 20 countries over the 1989-2017 period, our findings suggest that higher total and long-term leverage tend to decrease return on assets whereas they are positively associated with return on equity. |
| first_indexed | 2024-03-09T07:46:21Z |
| format | Article |
| id | doaj.art-ff039deccf704c00aee09cbe5676e12b |
| institution | Directory Open Access Journal |
| issn | 1567-7141 |
| language | English |
| last_indexed | 2024-03-09T07:46:21Z |
| publishDate | 2019-09-01 |
| publisher | TU Delft OPEN Publishing |
| record_format | Article |
| series | European Journal of Transport and Infrastructure Research |
| spelling | doaj.art-ff039deccf704c00aee09cbe5676e12b2023-12-03T03:38:17ZengTU Delft OPEN PublishingEuropean Journal of Transport and Infrastructure Research1567-71412019-09-0119310.18757/ejtir.2019.19.3.43843880Capital structure and firm performanceİsmail Çağrı Özcan0Ankara Yıldırım Beyazıt University, Department of Aviation ManagementThe privatisation and liberalisation waves have been increasing the number of private companies in the aviation industry. This, in turn, necessitates new policy analyses on major financial decisions regarding capital structure, corporate governance and investments. Among these major topics, the research about the association between capital structure and financial performance of the aviation companies largely focuses on the airlines. But a comparable analysis for the airport companies is less explored. The goal of this study is to contribute to the literature by analysing how the capital structure of the publicly traded airport companies affects their profitability and market valuation. Using an unbalanced panel data sample of 29 publicly traded airports from 20 countries over the 1989-2017 period, our findings suggest that higher total and long-term leverage tend to decrease return on assets whereas they are positively associated with return on equity.https://journals.open.tudelft.nl/ejtir/article/view/4384 |
| spellingShingle | İsmail Çağrı Özcan Capital structure and firm performance European Journal of Transport and Infrastructure Research |
| title | Capital structure and firm performance |
| title_full | Capital structure and firm performance |
| title_fullStr | Capital structure and firm performance |
| title_full_unstemmed | Capital structure and firm performance |
| title_short | Capital structure and firm performance |
| title_sort | capital structure and firm performance |
| url | https://journals.open.tudelft.nl/ejtir/article/view/4384 |
| work_keys_str_mv | AT ismailcagrıozcan capitalstructureandfirmperformance |