The Leasing Effect: The relationship between leasing ratios and the financial performance of publicly listed American airline companies
(2024) FEKH69 20241Department of Business Administration
- Abstract
- This paper aims to examine the relationship between aircraft leasing and the financial performance of American publicly listed airline companies. In doing so, this paper aims to contribute to the academic literature on leasing within the financial management literature. In addition, this paper aims to provide insights for decision-makers working within airlines (e.g., financial officers) or externally (e.g., equity researchers covering airline companies).
This paper is a quantitative deductive research based on 11 publicly listed American airlines’ financial reports obtained between 2004 – 2023 using Factset Fundamentals and 10-K SEC filings. Selected key indicators and variables have been calculated and compiled in Excel to be... (More) - This paper aims to examine the relationship between aircraft leasing and the financial performance of American publicly listed airline companies. In doing so, this paper aims to contribute to the academic literature on leasing within the financial management literature. In addition, this paper aims to provide insights for decision-makers working within airlines (e.g., financial officers) or externally (e.g., equity researchers covering airline companies).
This paper is a quantitative deductive research based on 11 publicly listed American airlines’ financial reports obtained between 2004 – 2023 using Factset Fundamentals and 10-K SEC filings. Selected key indicators and variables have been calculated and compiled in Excel to be compatible with further analysis in SPSS. Pearson Correlation, Multiple Linear Regression, and T-Test were used to analyze how leasing affects the financial position of the companies
This paper establishes its theoretical framework by integrating formal theory from the fields of financial accounting, financial management, and airline finance, as well as substantial theoretic insights from airline industry experts.
The results indicate that leasing has a negative effect on airline profitability. Specifically, the results indicate that low-leasing companies are more efficient in using their assets and debt to generate profit and use their capital more efficiently in their operations. Based on the results in this thesis, it is possible to consider leasing as a strategy focusing on short-term flexibility rather than maximum value creation from a long-term perspective. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9172963
- author
- Bergendorff, Jacob LU ; Geronson, Carl LU and Neuvonen, Noak LU
- supervisor
-
- Johan Dergård LU
- Elin Funck LU
- organization
- course
- FEKH69 20241
- year
- 2024
- type
- M2 - Bachelor Degree
- subject
- keywords
- Financial leasing, operational leasing, performance measurement, aircraft ownership, financial management
- language
- English
- id
- 9172963
- date added to LUP
- 2024-09-12 16:04:16
- date last changed
- 2024-09-12 16:04:16
@misc{9172963,
abstract = {{This paper aims to examine the relationship between aircraft leasing and the financial performance of American publicly listed airline companies. In doing so, this paper aims to contribute to the academic literature on leasing within the financial management literature. In addition, this paper aims to provide insights for decision-makers working within airlines (e.g., financial officers) or externally (e.g., equity researchers covering airline companies).
This paper is a quantitative deductive research based on 11 publicly listed American airlines’ financial reports obtained between 2004 – 2023 using Factset Fundamentals and 10-K SEC filings. Selected key indicators and variables have been calculated and compiled in Excel to be compatible with further analysis in SPSS. Pearson Correlation, Multiple Linear Regression, and T-Test were used to analyze how leasing affects the financial position of the companies
This paper establishes its theoretical framework by integrating formal theory from the fields of financial accounting, financial management, and airline finance, as well as substantial theoretic insights from airline industry experts.
The results indicate that leasing has a negative effect on airline profitability. Specifically, the results indicate that low-leasing companies are more efficient in using their assets and debt to generate profit and use their capital more efficiently in their operations. Based on the results in this thesis, it is possible to consider leasing as a strategy focusing on short-term flexibility rather than maximum value creation from a long-term perspective.}},
author = {{Bergendorff, Jacob and Geronson, Carl and Neuvonen, Noak}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Leasing Effect: The relationship between leasing ratios and the financial performance of publicly listed American airline companies}},
year = {{2024}},
}