Table 9
Open in new tab

Performance of financially distressed airlines after the Safe Harbor Reform Act of 2005

DependentPassengerFirm ops.Ops.Tobin’slog(No.log(No.log(No.log(No.log(Avg.log(Capital
variables:revenue/revenue/income/qofofofofnum. ofexpenditures)
 assetsindustry-sales passengers)routes)flights)aircraft)seats) 
  ops. revenue        
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
Fin. distress0.034***0.056**0.062**0.317**0.093***0.1340.1830.769***0.042**0.546***
|$\quad$||$\times $|Post-2005(0.009)(0.021)(0.023)(0.147)(0.030)(0.163)(0.164)(0.239)(0.021)(0.174)
ControlsYesYesYesYesYesYesYesYesYesYes
Year fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Firm fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Obs.87979796857474587797
No. of firms18202020181616171720
|$R^{2}$| (within).608.390.750.705.789.707.642.375.291.341
DependentPassengerFirm ops.Ops.Tobin’slog(No.log(No.log(No.log(No.log(Avg.log(Capital
variables:revenue/revenue/income/qofofofofnum. ofexpenditures)
 assetsindustry-sales passengers)routes)flights)aircraft)seats) 
  ops. revenue        
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
Fin. distress0.034***0.056**0.062**0.317**0.093***0.1340.1830.769***0.042**0.546***
|$\quad$||$\times $|Post-2005(0.009)(0.021)(0.023)(0.147)(0.030)(0.163)(0.164)(0.239)(0.021)(0.174)
ControlsYesYesYesYesYesYesYesYesYesYes
Year fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Firm fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Obs.87979796857474587797
No. of firms18202020181616171720
|$R^{2}$| (within).608.390.750.705.789.707.642.375.291.341

This table presents estimations from firm-fixed effect regressions. The sample includes all firms with SIC 4512 (scheduled airlines) over the period 2003–2008. Fin. distress is an indicator equal to 1 if in 2005 the Altman’s (1968) z-score for a firm is less than 1.81, and zero otherwise. Post-2005 is an indicator equal to 1 for the years 2006–2008, and zero for the years 2003–2005. Control variables include size, fuel expenses, cash, tangibility, and net worth. Refer to Table I.B.2 for detailed variable definitions. Standard errors reported in parentheses are clustered at the airline level. *|$p < .1$|⁠; **|$p < .05$|⁠; ***|$p < .01$|⁠.

Table 9
Open in new tab

Performance of financially distressed airlines after the Safe Harbor Reform Act of 2005

DependentPassengerFirm ops.Ops.Tobin’slog(No.log(No.log(No.log(No.log(Avg.log(Capital
variables:revenue/revenue/income/qofofofofnum. ofexpenditures)
 assetsindustry-sales passengers)routes)flights)aircraft)seats) 
  ops. revenue        
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
Fin. distress0.034***0.056**0.062**0.317**0.093***0.1340.1830.769***0.042**0.546***
|$\quad$||$\times $|Post-2005(0.009)(0.021)(0.023)(0.147)(0.030)(0.163)(0.164)(0.239)(0.021)(0.174)
ControlsYesYesYesYesYesYesYesYesYesYes
Year fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Firm fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Obs.87979796857474587797
No. of firms18202020181616171720
|$R^{2}$| (within).608.390.750.705.789.707.642.375.291.341
DependentPassengerFirm ops.Ops.Tobin’slog(No.log(No.log(No.log(No.log(Avg.log(Capital
variables:revenue/revenue/income/qofofofofnum. ofexpenditures)
 assetsindustry-sales passengers)routes)flights)aircraft)seats) 
  ops. revenue        
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
Fin. distress0.034***0.056**0.062**0.317**0.093***0.1340.1830.769***0.042**0.546***
|$\quad$||$\times $|Post-2005(0.009)(0.021)(0.023)(0.147)(0.030)(0.163)(0.164)(0.239)(0.021)(0.174)
ControlsYesYesYesYesYesYesYesYesYesYes
Year fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Firm fixedYesYesYesYesYesYesYesYesYesYes
|$\quad$| effects          
Obs.87979796857474587797
No. of firms18202020181616171720
|$R^{2}$| (within).608.390.750.705.789.707.642.375.291.341

This table presents estimations from firm-fixed effect regressions. The sample includes all firms with SIC 4512 (scheduled airlines) over the period 2003–2008. Fin. distress is an indicator equal to 1 if in 2005 the Altman’s (1968) z-score for a firm is less than 1.81, and zero otherwise. Post-2005 is an indicator equal to 1 for the years 2006–2008, and zero for the years 2003–2005. Control variables include size, fuel expenses, cash, tangibility, and net worth. Refer to Table I.B.2 for detailed variable definitions. Standard errors reported in parentheses are clustered at the airline level. *|$p < .1$|⁠; **|$p < .05$|⁠; ***|$p < .01$|⁠.

Close
This Feature Is Available To Subscribers Only

Sign In or Create an Account

Close

This PDF is available to Subscribers Only

View Article Abstract & Purchase Options

For full access to this pdf, sign in to an existing account, or purchase an annual subscription.

Close