Effecting Factors of Profitability: A Panel Data Analysis on the Best Airline Companies in Europe Ranked by the SKYTRAX
Abstract
The aim of this study is to determine the
effecting factors on the profitability of companies rated by the SKYTRAX as the
best air transportation companies in Europe in the period of 2006-2015. Through
this aim, asset turnover, equity turnover and fixed-asset turnover factors
defined as activity ratios; leverage, debt and long-term debt to capitalization
factors which are detected as the capitalization ratios on profitability is
analyzed with panel data method. Empirical findings point out that the factors
related to capitalization ratios namely; leverage and long-term debt to
capitalization significantly affect profitability negatively; while one of the
activity factors namely equity turnover ratio has statistically a positive
effect on profitability. Additionally, asset turnover seems to have a negative
effect on profitability.
References
- Acikgoz, E., Uygurturk, H., & Korkmaz, T. (2015). Analysis of Factors Affecting Growth of Pension Mutual Funds in Turkey. International Journal of Economics and Financial Issues, 5 (2), 427-433.
- Alahyari, A. (2014). Determinants of Profitability in the Airline Industry: A Comparison with Turkish Airlines Msc in Banking and Finance. North Cyprus: Eastern Mediterranean University.
- Baltagi, B. H. (2013). Econometric Analysis of Panel Data. Chichester: John Wiley & Sons.
- Baltagi, B. H., & Li, Q. (1995). Testing AR(1) against MA(1) Disturbances in an Error Component Model. Journal of Econometrics, 68 (1), 133-151.
- Beck, N., & Katz, J. N. (1995). What To Do (and Not To Do) with Times-Series Cross-Section Data in Comparative Politics. American Political Science Review, 89(3), 634-647.
- Bourjade, S., Huc, R., & Catherine, M-V. (2017). Leasing and Profitability: Empirical Evidence from the Airline Industry. Transportation Research Part A, 97, 30-46.
- Breusch, T. S., & Pagan, A. R. (1979). A Simple Test for Heteroscedasticity and Random Coefficient Variation. Econometrica, 47(5), 1287-1294.
- Chin, A. T. H., & Tay, J. H. (2001). Developments in Air Transport: Implications on Investment Decisions, Profitability and Survival of Asian Airlines. Journal of Air Transport Management, 7, 319-330.
- Douglas, I., & Tan, D. (2017). Global Air Alliances and Profitability: A Difference-in-Difference Analysis. Transportation Research Part A, 103, 432-443.
- Garafelakis, A., Mantalis, G., Lemonakis, C., Vassakis, K., & Spinthiropouls, K. (2016). Determinants of Profitability in Aviation Industry of Europe and America. International Journal of Supply Chain Management, 5(2), 131-137.
- IATA (2016). Annual Reports Review. (15.10.2017), Retrieved from https://www.iata.org/about/Documents /iata-annual-review-2016.pdf
- Mantin, B., & Wang, J-H. E. (2012). Determinants of Profitability and Recovery from System-Wide Shocks: The Case of the Airline Industry. Journal of Airline and Airport Management, 2(1), 1-21.
- Mwangi, F.K. (2013). The Effect of Macroeconomic Variables on Financial Performance of Aviation Industry in Kenya, Msc in Finance, Nairobi University, Kenya.
- O’Brien, R.T.M. (2007). A Caution Regarding Rules of Thumb for Variance Inflation Factors. Quality and Quantity, 41(5), 673-690.
- Oum, T. H., Park, J-H., Kim, K., & Yu, C. (2004). The effect of Horizontal Alliances on Firm Productivity and Profitability: Evidence from the Global Airline Industry, Journal of Business Research, 57, 844-853.
- Perezgomez, J. D., & Lin, B. (2010). Net Profitability of Airline Alliances, An Empirical Study. Aviation Education and Research Proceedings, 43-48.
- Scotti, D., & Volta, N. (2017). Profitability Change in the Global Airline Industry. Transportation Research Part E, 1-12.
- SKYTRAX (2017). The 2016 Airline Awards by Region. (15.10.2017), Retrieved from http://www. worldairlineawards.com/Awards/best_airlines_by_world_region.html
- Suhadak, D. P.P. (2017). the Effect of Jet Fuel Price and Macroeconomics Variables on Profitability of Airline Industry in Asia. Jurnal Administrasi Bisnis, 50 (3), 207-217.
- Vieira, R. S. (2010). The Relationship between Liquidity and Profitability: An Explanatory Study of Airline Companies between 2005 and 2008. Msc in Finance. Sweden: Umea University.
SKYTRAX Tarafından Avrupa’nın En İyi Havayolu Olarak Derecelendirilen Şirketlerin Karlılıklarına Etki Eden Faktörler: Bir Panel Veri Uygulaması
Abstract
Bu
çalışmanın amacı, bir derecelendirme kuruluşu olan SKYTRAX tarafından
Avrupa’nın en iyi havayolu şirketleri arasında gösterilen firmaların aktif
karlılıklarına etki eden faktörlerin 2006-2015 dönemine ilişkin veriler
kullanılarak tespit edilmesidir. Bu amaçla faaliyet oranlarını temsilen; aktif
devir hızı, özsermaye devir hızı ve sabit varlık devir hızı oranları; finansal
yapıya ilişkin oranları temsilen de; uzun vadeli borçların kapitalizasyon
oranı, borçlanma oranı ile kaldıraç oranı panel veri yöntemiyle analiz
edilmiştir. Elde edilen bulgulara göre, finansal yapı oranlarını temsil eden
kaldıraç oranı ve uzun vadeli borçların kapitalizasyona oranının aktif
karlılığı üzerinde anlamlı ve negatif yönlü bir etkisi olduğu, faaliyet oranlarından
biri olan özsermaye devir hızının ise çalışmaya ilişkin şirketlerin aktif
karlılıkları üzerinde pozitif yönlü bir etkisinin olduğu tespit edilmiştir.
Bununla birlikte, diğer bir faktör olan aktif devir hızı oranının havayolu
taşımacılık şirketlerinin karlılıkları üzerinde istatistiki olarak anlamlı ve
negatif yönlü bir etkisinin bulunduğu da elde edilen bulgular arasındadır.
References
- Acikgoz, E., Uygurturk, H., & Korkmaz, T. (2015). Analysis of Factors Affecting Growth of Pension Mutual Funds in Turkey. International Journal of Economics and Financial Issues, 5 (2), 427-433.
- Alahyari, A. (2014). Determinants of Profitability in the Airline Industry: A Comparison with Turkish Airlines Msc in Banking and Finance. North Cyprus: Eastern Mediterranean University.
- Baltagi, B. H. (2013). Econometric Analysis of Panel Data. Chichester: John Wiley & Sons.
- Baltagi, B. H., & Li, Q. (1995). Testing AR(1) against MA(1) Disturbances in an Error Component Model. Journal of Econometrics, 68 (1), 133-151.
- Beck, N., & Katz, J. N. (1995). What To Do (and Not To Do) with Times-Series Cross-Section Data in Comparative Politics. American Political Science Review, 89(3), 634-647.
- Bourjade, S., Huc, R., & Catherine, M-V. (2017). Leasing and Profitability: Empirical Evidence from the Airline Industry. Transportation Research Part A, 97, 30-46.
- Breusch, T. S., & Pagan, A. R. (1979). A Simple Test for Heteroscedasticity and Random Coefficient Variation. Econometrica, 47(5), 1287-1294.
- Chin, A. T. H., & Tay, J. H. (2001). Developments in Air Transport: Implications on Investment Decisions, Profitability and Survival of Asian Airlines. Journal of Air Transport Management, 7, 319-330.
- Douglas, I., & Tan, D. (2017). Global Air Alliances and Profitability: A Difference-in-Difference Analysis. Transportation Research Part A, 103, 432-443.
- Garafelakis, A., Mantalis, G., Lemonakis, C., Vassakis, K., & Spinthiropouls, K. (2016). Determinants of Profitability in Aviation Industry of Europe and America. International Journal of Supply Chain Management, 5(2), 131-137.
- IATA (2016). Annual Reports Review. (15.10.2017), Retrieved from https://www.iata.org/about/Documents /iata-annual-review-2016.pdf
- Mantin, B., & Wang, J-H. E. (2012). Determinants of Profitability and Recovery from System-Wide Shocks: The Case of the Airline Industry. Journal of Airline and Airport Management, 2(1), 1-21.
- Mwangi, F.K. (2013). The Effect of Macroeconomic Variables on Financial Performance of Aviation Industry in Kenya, Msc in Finance, Nairobi University, Kenya.
- O’Brien, R.T.M. (2007). A Caution Regarding Rules of Thumb for Variance Inflation Factors. Quality and Quantity, 41(5), 673-690.
- Oum, T. H., Park, J-H., Kim, K., & Yu, C. (2004). The effect of Horizontal Alliances on Firm Productivity and Profitability: Evidence from the Global Airline Industry, Journal of Business Research, 57, 844-853.
- Perezgomez, J. D., & Lin, B. (2010). Net Profitability of Airline Alliances, An Empirical Study. Aviation Education and Research Proceedings, 43-48.
- Scotti, D., & Volta, N. (2017). Profitability Change in the Global Airline Industry. Transportation Research Part E, 1-12.
- SKYTRAX (2017). The 2016 Airline Awards by Region. (15.10.2017), Retrieved from http://www. worldairlineawards.com/Awards/best_airlines_by_world_region.html
- Suhadak, D. P.P. (2017). the Effect of Jet Fuel Price and Macroeconomics Variables on Profitability of Airline Industry in Asia. Jurnal Administrasi Bisnis, 50 (3), 207-217.
- Vieira, R. S. (2010). The Relationship between Liquidity and Profitability: An Explanatory Study of Airline Companies between 2005 and 2008. Msc in Finance. Sweden: Umea University.
Details
| Primary Language | English |
|---|---|
| Journal Section | Research Article |
| Authors | |
| Publication Date | April 11, 2018 |
| Acceptance Date | February 19, 2018 |
| Published in Issue | Year 2018 Volume: 6 Issue: 2 |
Cited By
KARLILIĞI ETKİLEYEN İÇSEL FAKTÖRLER: KÜRESEL HAVACILIK ENDÜSTRİSİNDEN KANITLAR
Nevşehir Hacı Bektaş Veli Üniversitesi SBE Dergisi
Caner YILDIRIM
https://doi.org/10.30783/nevsosbilen.621188
Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi Creative Commons Atıf-GayriTicari 4.0 Uluslararası Lisansı (CC BY NC) ile lisanslanmıştır.