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Value determinants in the aviation industry

Author

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  • Malighetti, Paolo
  • Meoli, Michele
  • Paleari, Stefano
  • Redondi, Renato

Abstract

This paper analyses the value determinants for both airports and airlines. The analysis is based on a sample of 24 airport operators and 87 airlines, listed on international financial markets on 31 December 2007. We analyse the value drivers for both airlines and airports by studying the determinants of the Tobin's Q. On average the market valuation of airport operators is higher than that of carriers. On the whole we show that ownership concentration has a positive impact, while size and state ownership are, on average, detrimental for the market valuation. Further, other industry-specific variables are statistically significant. Airport valuation is positively influenced by size, return on assets and the growth in terms of number of passengers. Airlines valuation is statistically higher for low-cost companies, while age and route number have a negative impact on market valuation.

Suggested Citation

  • Malighetti, Paolo & Meoli, Michele & Paleari, Stefano & Redondi, Renato, 2011. "Value determinants in the aviation industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(3), pages 359-370, May.
    • Handle: RePEc:eee:transe:v:47:y:2011:i:3:p:359-370
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    Citations

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    Cited by:

    1. Ismail, Noor Azina & Jenatabadi, Hashem Salarzadeh, 2014. "The influence of firm age on the relationships of airline performance, economic situation and internal operation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 212-224.
    2. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2023. "Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-24, December.
    3. Kotcharin, Suntichai & Maneenop, Sakkakom & Jaroenjitrkam, Anutchanat, 2023. "The impact of government policy responses on airline stock return during the COVID-19 crisis," Research in Transportation Economics, Elsevier, vol. 99(C).
    4. Martins, António Miguel & Cró, Susana, 2022. "Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study," Journal of Air Transport Management, Elsevier, vol. 105(C).
    5. Andrey B. Ankudinov & Bela S. Bataeva, 2021. "Capital structure and market capitalization: Empirical analysis of Russian public companies," Upravlenets, Ural State University of Economics, vol. 12(2), pages 35-42, April.
    6. Coluccia, Daniela & Dabić, Marina & Del Giudice, Manlio & Fontana, Stefano & Solimene, Silvia, 2020. "R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective," Journal of Business Research, Elsevier, vol. 119(C), pages 259-271.
    7. Yurii Hrinchenko, 2020. "The Case of the Aviation Industry Development under the Conditions of an Open Economy: A Theoretical Context," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(1), pages 28-41, March.
    8. Sismanidou, Athina & Tarradellas, Joan & Bel, Germà & Fageda, Xavier, 2013. "Estimating potential long-haul air passenger traffic in national networks containing two or more dominant cities," Journal of Transport Geography, Elsevier, vol. 26(C), pages 108-116.
    9. 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.
    10. Pouget, Lilian & Ribeiro, Nuno Antunes & Odoni, Amedeo R. & Antunes, António Pais, 2023. "How do airlines react to slot displacements? Evidence from a major airport," Journal of Air Transport Management, Elsevier, vol. 106(C).

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