The cost of capital for airlines: The effects of internal governance practices and the application of new leasing standards

IF 3.9 2区工程技术 Q2 TRANSPORTATION

Journal of Air Transport Management Pub Date : 2025-02-23 DOI:10.1016/j.jairtraman.2025.102758

Alicia Ramírez-Orellana , Anne Marie Garvey , Laura Parte , José Antonio Gonzalo-Angulo

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Abstract

The tourism literature has made a real effort to study the impact of internal governance practices and external factors on corporate performance and business risk. Nevertheless, knowledge in the airline industry is less advanced than in other industries. This study aims to fill the gap by extending our learning in a new direction. To be specific, we address the following research questions: 1) Do internal governance practices affect the cost of capital (CoC) for airlines? 2) Do the new leasing standards (IFRS 16 and ASC 842) affect the CoC? 3) Has external audit pricing mediated previous relationships? To this end we collect information on 50 airlines for the period 2017–2022. The main results show that both the adoption of new leasing standards (IFRS 16 & ASC 842) and the governance dimension are important instruments for managing risk. There is also a sizeable mediation effect on audit pricing involved in the strategy of having good governance mechanisms for reducing the CoC for airlines.

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来源期刊

Journal of Air Transport Management TRANSPORTATION-

CiteScore

12.40

自引率

11.70%

发文量

期刊介绍： The Journal of Air Transport Management (JATM) sets out to address, through high quality research articles and authoritative commentary, the major economic, management and policy issues facing the air transport industry today. It offers practitioners and academics an international and dynamic forum for analysis and discussion of these issues, linking research and practice and stimulating interaction between the two. The refereed papers in the journal cover all the major sectors of the industry (airlines, airports, air traffic management) as well as related areas such as tourism management and logistics. Papers are blind reviewed, normally by two referees, chosen for their specialist knowledge. The journal provides independent, original and rigorous analysis in the areas of: • Policy, regulation and law • Strategy • Operations • Marketing • Economics and finance • Sustainability