The impact of Board of Directors’ characteristics on firm performance (the case of global airlines industry)

Abstract

The goal of this research was to determine, whether there is a significant relationship between different Board of Director’s characteristics and airline companies’ financial performance, both market and accounting. In order to achieve this goal a significant amount of literature on corporate governance was analyzed, the peculiarities of global airlines industry were discussed, the sample of benchmark global airline companies (global airline alliances members) was collected and the empirical study of data was done. It was found that bigger proportion of independent directors positively affects firm performance, the presence of split in Chairman and CEO roles positively affects accounting performance, the size of the Board positively affects market performance and the proportion of women has non-liner relationship with market performance of global airline companies.