Do low cost carriers have different corporate governance models?

Carlos Alves and Cristina Barbot

Journal of Air Transport Management, 2007, vol. 13, issue 2, 116-120

Abstract: In this paper, we investigate whether different business models in the same industry (passenger air transportation) lead to different corporate governance models. We found that low-cost carriers organise their boards differently from full service carriers to achieve lower costs and a faster decision-making process that is required by their business model. We also found that low-cost carriers and full service carriers solve their potential agency cost problems differently and that full service carriers have more board monitoring committees, and low-cost carriers have a closer coincidence of interests between shareholders and executive directors.

Date: 2007
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Working Paper: Do Low Cost Carriers Have Different Corporate Governance Models? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:13:y:2007:i:2:p:116-120

DOI: 10.1016/j.jairtraman.2006.11.001

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