Effect of Ownership Structure on Financial Performance: Evidence from Listed Airlines in Africa
Dublin Core
Title
Effect of Ownership Structure on Financial Performance: Evidence from Listed Airlines in Africa
Subject
Airlines; Financial performance; Ownership structure; Private ownership; State ownership.
Description
Objective: This study empirically examines the impact of ownership structure on the financial performance of listed airlines in Africa.
Design/Methods/Approach: The research utilized quantitative techniques to collect secondary data from listed airlines over ten years (2010-2019). Descriptive statistics and multiple regression were used for analysis.
Findings: The results revealed that airlines with the majority of private domestic and private foreign ownership showed a significant positive effect on financial performance (ROA and ROE). In contrast, state ownership had an insignificant impact on airlines' financial performance. The study supports the property rights theory, emphasizing the importance of private ownership in airlines.
Originality/Value: This study adds to the existing literature by providing evidence on how ownership structure influences financial performance in African airlines, contributing to aviation research.
Practical/Policy Implication: The findings suggest that private and foreign investors should consider acquiring controlling airline stakes to enhance financial performance. Policymakers should aim to create flexible laws and regulations that attract domestic and foreign private investors to the aviation sector, potentially fostering improved management practices and policy developments.
Keywords: Airlines; Financial performance; Ownership structure; Private ownership; State ownership.
Design/Methods/Approach: The research utilized quantitative techniques to collect secondary data from listed airlines over ten years (2010-2019). Descriptive statistics and multiple regression were used for analysis.
Findings: The results revealed that airlines with the majority of private domestic and private foreign ownership showed a significant positive effect on financial performance (ROA and ROE). In contrast, state ownership had an insignificant impact on airlines' financial performance. The study supports the property rights theory, emphasizing the importance of private ownership in airlines.
Originality/Value: This study adds to the existing literature by providing evidence on how ownership structure influences financial performance in African airlines, contributing to aviation research.
Practical/Policy Implication: The findings suggest that private and foreign investors should consider acquiring controlling airline stakes to enhance financial performance. Policymakers should aim to create flexible laws and regulations that attract domestic and foreign private investors to the aviation sector, potentially fostering improved management practices and policy developments.
Keywords: Airlines; Financial performance; Ownership structure; Private ownership; State ownership.
Creator
Jafari Makoka1, Janeth Patrick Swai2, *Magwana Ngollo3, Abraham Charles Nathanael4
Source
https://e-journal.unair.ac.id/jmtt
Date
December 14, 2023
Contributor
peri irawan
Format
pdf
Language
english
Type
text
Files
Collection
Citation
Jafari Makoka1, Janeth Patrick Swai2, *Magwana Ngollo3, Abraham Charles Nathanael4, “Effect of Ownership Structure on Financial Performance: Evidence from Listed Airlines in Africa,” Repository Horizon University Indonesia, accessed April 5, 2025, https://repository.horizon.ac.id/items/show/5730.