{"id":{"repo_id":"uwtsd","oai_identifier":"oai:repository.uwtsd.ac.uk:4055"},"canonical_url":"https://search.dev.ndltd.org/etd/uwtsd/oai:repository.uwtsd.ac.uk:4055","repository":{"repo_id":"uwtsd","name":"University of Wales Trinity Saint David","base_url":"https://repository.uwtsd.ac.uk/cgi/oai2"},"display":{"title":"The Impact of Debt Financing on the Financial Performance of Airline Companies Listed on the London Stock Exchange","abstract":"Background: The capital structure of airline companies is critical to financial performance due to the capital-intensive nature of the industry. While debt financing supports expansion, excessive borrowing can reduce liquidity and profitability, particularly under volatile market conditions. Methods: The study applied regression analysis on secondary financial data from four London Stock Exchange, listed airlines, International Airlines Group (IAG), EasyJet, Wizz Air, and Jet2, to examine the effect of debt ratio and debt-to-equity ratio on current ratio, return on assets (ROA), and return on equity (ROE). Results: The debt-to-equity ratio showed a significant negative effect on the current ratio, indicating that equity financing strengthens liquidity. Debt ratio had a significant negative effect on both ROA and ROE, while debt-to-equity ratio was insignificant for ROA and weakly negative for ROE. Conclusion: Excessive debt undermines liquidity and profitability in London-listed airlines, supporting the Trade-off and Pecking Order theories while challenging Modigliani–Miller’s irrelevance view. Prudent debt management is essential for sustaining financial stability and shareholder value in the airline sector.","abstract_html":"Background: The capital structure of airline companies is critical to financial performance due to the capital-intensive nature of the industry. While debt financing supports expansion, excessive borrowing can reduce liquidity and profitability, particularly under volatile market conditions. Methods: The study applied regression analysis on secondary financial data from four London Stock Exchange, listed airlines, International Airlines Group (IAG), EasyJet, Wizz Air, and Jet2, to examine the effect of debt ratio and debt-to-equity ratio on current ratio, return on assets (ROA), and return on equity (ROE). Results: The debt-to-equity ratio showed a significant negative effect on the current ratio, indicating that equity financing strengthens liquidity. Debt ratio had a significant negative effect on both ROA and ROE, while debt-to-equity ratio was insignificant for ROA and weakly negative for ROE. Conclusion: Excessive debt undermines liquidity and profitability in London-listed airlines, supporting the Trade-off and Pecking Order theories while challenging Modigliani–Miller’s irrelevance view. Prudent debt management is essential for sustaining financial stability and shareholder value in the airline sector.","abstract_has_math":false,"creators":["Patel, Zeel Mihir"],"institution":"University of Wales Trinity Saint David","degree_name":"mba","degree_level":"masters","degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2025,"date_issued":"2025-11","date_published":"2025-11","updated_at":"2026-07-24T05:53:08Z","subjects":["HD28 Rheoli. Rheoli Diwydiannol"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier.grantnumber","label":"Dc Identifier Grantnumber","values":["UWTSD"],"render_values":[{"text":"UWTSD","href":null,"code":true}]}]},"links":{"outbound_url":"https://doi.org/10.82227/repository.uwtsd.ac.uk.00004055","outbound_label":"DOI","outbound_source":"dc:identifier.doi"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor.sponsor","label":"Sponsor","values":["University of Wales Trinity Saint David"]},{"key":"dc:creator","label":"Author","values":["Patel, Zeel Mihir"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2025-11-19"]},{"key":"dc:date.issued","label":"Date","values":["2025-11"]},{"key":"dc:publisher.commercial","label":"Dc Publisher Commercial","values":["University of Wales Trinity Saint David"]},{"key":"dc:publisher.department","label":"Dc Publisher Department","values":["Traethodau Meistr","Institute of Inner City Learning"]},{"key":"dc:publisher.institution","label":"Dc Publisher Institution","values":["University of Wales Trinity Saint David"]},{"key":"dc:relation.isreferencedby","label":"Dc Relation Isreferencedby","values":["https://repository.uwtsd.ac.uk/id/eprint/4055/"]},{"key":"dc:type","label":"Dc Type","values":["Gosodiad"]},{"key":"dc:type.qualificationlevel","label":"Dc Type Qualificationlevel","values":["masters"]},{"key":"dc:type.qualificationname","label":"Dc Type Qualificationname","values":["mba"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["HD28 Rheoli. Rheoli Diwydiannol"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.doi","label":"DOI","values":["10.82227/repository.uwtsd.ac.uk.00004055"]},{"key":"dc:identifier.grantnumber","label":"Dc Identifier Grantnumber","values":["UWTSD"]},{"key":"dc:identifier.uri","label":"Identifier URI","values":["https://repository.uwtsd.ac.uk/id/eprint/4055/1/Patel_ZM_MBA_Thesis.pdf"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["Background: The capital structure of airline companies is critical to financial performance due to the capital-intensive nature of the industry. While debt financing supports expansion, excessive borrowing can reduce liquidity and profitability, particularly under volatile market conditions. Methods: The study applied regression analysis on secondary financial data from four London Stock Exchange, listed airlines, International Airlines Group (IAG), EasyJet, Wizz Air, and Jet2, to examine the effect of debt ratio and debt-to-equity ratio on current ratio, return on assets (ROA), and return on equity (ROE). Results: The debt-to-equity ratio showed a significant negative effect on the current ratio, indicating that equity financing strengthens liquidity. Debt ratio had a significant negative effect on both ROA and ROE, while debt-to-equity ratio was insignificant for ROA and weakly negative for ROE. Conclusion: Excessive debt undermines liquidity and profitability in London-listed airlines, supporting the Trade-off and Pecking Order theories while challenging Modigliani–Miller’s irrelevance view. Prudent debt management is essential for sustaining financial stability and shareholder value in the airline sector."]},{"key":"dc:format","label":"Dc Format","values":["text"]},{"key":"dc:title","label":"Title","values":["The Impact of Debt Financing on the Financial Performance of Airline Companies Listed on the London Stock Exchange"]}]}],"canonical_facts":{"dc:contributor.sponsor":["University of Wales Trinity Saint David"],"dc:creator":["Patel, Zeel Mihir"],"dc:date":["2025-11-19"],"dc:date.issued":["2025-11"],"dc:description.abstract":["Background: The capital structure of airline companies is critical to financial performance due to the capital-intensive nature of the industry. While debt financing supports expansion, excessive borrowing can reduce liquidity and profitability, particularly under volatile market conditions. Methods: The study applied regression analysis on secondary financial data from four London Stock Exchange, listed airlines, International Airlines Group (IAG), EasyJet, Wizz Air, and Jet2, to examine the effect of debt ratio and debt-to-equity ratio on current ratio, return on assets (ROA), and return on equity (ROE). Results: The debt-to-equity ratio showed a significant negative effect on the current ratio, indicating that equity financing strengthens liquidity. Debt ratio had a significant negative effect on both ROA and ROE, while debt-to-equity ratio was insignificant for ROA and weakly negative for ROE. Conclusion: Excessive debt undermines liquidity and profitability in London-listed airlines, supporting the Trade-off and Pecking Order theories while challenging Modigliani–Miller’s irrelevance view. Prudent debt management is essential for sustaining financial stability and shareholder value in the airline sector."],"dc:format":["text"],"dc:identifier.doi":["10.82227/repository.uwtsd.ac.uk.00004055"],"dc:identifier.grantnumber":["UWTSD"],"dc:identifier.uri":["https://repository.uwtsd.ac.uk/id/eprint/4055/1/Patel_ZM_MBA_Thesis.pdf"],"dc:publisher.commercial":["University of Wales Trinity Saint David"],"dc:publisher.department":["Traethodau Meistr","Institute of Inner City Learning"],"dc:publisher.institution":["University of Wales Trinity Saint David"],"dc:relation.isreferencedby":["https://repository.uwtsd.ac.uk/id/eprint/4055/"],"dc:subject":["HD28 Rheoli. Rheoli Diwydiannol"],"dc:title":["The Impact of Debt Financing on the Financial Performance of Airline Companies Listed on the London Stock Exchange"],"dc:type":["Gosodiad"],"dc:type.qualificationlevel":["masters"],"dc:type.qualificationname":["mba"]},"updated_at":"2026-07-24T05:53:08Z"}