Do Low Cost Carriers Have Different Corporate Governance Models?

• Type: Article in International Scientific Journal
• Date: 2007

Authors

Carlos Alves (Author) FEP; Maria Cristina Barbot (Author) FEP

Journal

Title: Journal of Air Transport Management

Vol. 13 No. 2

Pages: 116-120

ISSN: 0969-6997

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 7 Citations

ISI Web of Science

Scopus - 10 Citations

Other information

Authenticus ID: P-004-BGE

DOI: 10.1016/j.jairtraman.2006.11.001

Abstract (EN): 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.

Language: Portuguese

Type (Professor's evaluation): Scientific