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Determinants of the payout decision in the airline industry

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  • Moon, Joonho
  • Lee, Won Seok
  • Dattilo, John

Abstract

Payouts play an important role in the relationship between shareholders and agents in terms of rewarding the decisions of shareholders. Previous studies have observed that payout decisions appear in different ways depending on an industry's financial and operating structures. Since the airline industry has been characterized as high debt dependency, this study presumes distinctive characteristics on payouts determinants and identifies them influencing dividend payments and share repurchases. The results indicate that firm size, cash holdings, financial leverage, and life-cycle influence dividends payments, whereas firm size, cash holdings and life-cycle stage affect share repurchase. The implications of the findings are discussed.

Suggested Citation

  • Moon, Joonho & Lee, Won Seok & Dattilo, John, 2015. "Determinants of the payout decision in the airline industry," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 282-288.
    • Handle: RePEc:eee:jaitra:v:42:y:2015:i:c:p:282-288
    DOI: 10.1016/j.jairtraman.2014.11.009
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    2. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2020. "Impact of Sustainability on Firm Value and Financial Performance in the Air Transport Industry," Sustainability, MDPI, vol. 12(23), pages 1-23, November.
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    5. Anshu Agrawal, 2021. "Impact of Elimination of Dividend Distribution Tax on Indian Corporate Firms Amid COVID Disruptions," JRFM, MDPI, vol. 14(9), pages 1-38, September.
    6. Jing Zhou, 2023. "Airline capacity distribution under financial budget and resource consideration," Journal of Combinatorial Optimization, Springer, vol. 45(5), pages 1-29, July.
    7. Hashem Salarzadeh Jenatabadi & Peyman Babashamsi & Datis Khajeheian & Nader Seyyed Amiri, 2016. "Airline Sustainability Modeling: A New Framework with Application of Bayesian Structural Equation Modeling," Sustainability, MDPI, vol. 8(11), pages 1-17, November.
    8. Dinçer, Hasan & Hacıoğlu, Ümit & Yüksel, Serhat, 2017. "Balanced scorecard based performance measurement of European airlines using a hybrid multicriteria decision making approach under the fuzzy environment," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 17-33.
    9. Saleh F. A. Khatib & Dewi Fariha Abdullah & Ernie Hendrawaty & Ahmed A. Elamer, 2022. "A bibliometric analysis of cash holdings literature: current status, development, and agenda for future research," Management Review Quarterly, Springer, vol. 72(3), pages 707-744, September.
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    11. Peter E. Ayunku & Dumani Markjackson*, 2019. "Determinants of Dividend Payout Policy of Listed Corporations in Nigeria," Business, Management and Economics Research, Academic Research Publishing Group, vol. 5(9), pages 134-141, 09-2019.
    12. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2022. "Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5052-5079, April.
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