Chief Executive Officers and the Value of US Airlines: The Moderating Effect of Carrier Type

Abstract

The purpose of this research is to explore the moderating effect of carrier type on the effects of upper echelon attributes. The study subject is the position of chief executive officer (CEO). The dependent variable is market-to-book value; the independent variables are CEO age, tenure, and educational background. The moderator is LCC. For the data collection, this study used COMPUSTAT and EXECUCOMP using the standard industry classification code 4512; the data are collected from Annual 10K and Linkedin. There are 15 airlines examined, and the study period is from 1999–2019; in total, 210 observations were used for the data analysis. Multiple regression analysis was the main instrument used to test the research hypotheses. The results indicate that both older CEOs in LCCs performed better in the market.