DETERMINANTS OF FINANCIAL LEVERAGE: THE CASE OF LARGEST AIRLINES IN ASIA

  • Norliza Che Yahya Universiti Teknologi MARA
  • Hanizatul Nadia Harun Universiti Teknologi MARA
  • Azreen Roslan Universiti Teknologi MARA

Abstract

This study is developed to examine the determinants of financial leverage of capital structure of airlines industry in Asia for the period from 2012 to 2016. Airlines industry is selected as sample of this study as it reflects the highest energy intensive industry based on the largest amount of fuel consumption on the business (Bratlie, 2012). This study defined airline as an operation entity that provides services to carry people and freight by air with schedule routes provided. This study, using panel data analysis, reports that size and growth have a positive relationship to financial leverage. In contrast, profitability and age are negatively related. Regardless of the signs, all the explanatory variables in this study are strongly significant in determining financial leverage (measured by debt to equity ratio).

Published
2019-09-30
How to Cite
CHE YAHYA, Norliza; NADIA HARUN, Hanizatul; ROSLAN, Azreen. DETERMINANTS OF FINANCIAL LEVERAGE: THE CASE OF LARGEST AIRLINES IN ASIA. ADVANCES IN BUSINESS RESEARCH INTERNATIONAL JOURNAL, [S.l.], v. 5, n. 2, p. 127-136, sep. 2019. ISSN 2462-1838. Available at: <https://myjms.mohe.gov.my/index.php/ABRIJ/article/view/10011>. Date accessed: 02 dec. 2022. doi: https://doi.org/10.24191/abrij.v5i2.10011.
Section
Articles