Do Low Cost Carriers Have Different Corporate Governance Models?

Carlos Alves and Cristina Barbot ()
Additional contact information
Cristina Barbot: CETE, Faculdade de Economia do Porto, Universidade do Porto

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

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 (LCCs) organise their boards differently from full service carriers (FSCs), in order to achieve lower costs and the faster decision-making process that is required by their business model. We also found that LCCs and FSCs solve their potential agency cost problems differently. FSCs have more board committees in order to monitor management, and LCSs have a closer coincidence of interests between shareholders and management.

Keywords: corporate governance; low cost carriers (search for similar items in EconPapers)
JEL-codes: G34 L93 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-11
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.fep.up.pt/investigacao/workingpapers/06.11.14_WP231_alvesbarbot.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fep.up.pt/investigacao/workingpapers/06.11.14_WP231_alvesbarbot.pdf [302 Found]--> https://fep.up.pt/investigacao/workingpapers/06.11.14_WP231_alvesbarbot.pdf)

Related works:
Journal Article: Do low cost carriers have different corporate governance models? (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:231

Access Statistics for this paper

More papers in FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto Contact information at EDIRC.
Bibliographic data for series maintained by ().