Purpose The purpose of this study is to identify the impact of human and structural capital on profitability of major airlines and examine whether region, capital ownership and control and strategic alliance play a clustering effect on profitability. Design/methodology/approach Using information from the top 30 airlines worldwide, in particular human and structural capital proxies, a linear model is regressed. Test of hypotheses were performed towards the identification of the influence emerged from variables, such as region, capital ownership and control and strategic alliances, on intellectual capital drivers and profitability. Findings Turnover is driven by human and structural capital factors, namely: employee expenses and benefits; size of board of directors; intangible assets; codeshare agreements; and passenger traffic. Airlines profitability does not depend on region, capital ownership and control or strategic alliance in which the company is integrated. Research limitations/implications In spite of the limitations, we underline the range of time under analysis and the sample size. However, the current approach can be replicated over time and based in other rankings, structured on different metrics and approaches. Practical implications The empirical results provide both an understanding of how independent variables positively affect the performance of airlines and offer some explanation as to the relationship between key characteristics of firms and profitability. Originality/value The research adds value to the current literature by exploring the effects of new intellectual capital drivers on profitability of airlines firms. Focused on a sector that strongly contributes to improve the networking between nations, it provides a new and updated overview.

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In modern economies, the corporate governance principles have been understood as drivers that mitigate the risk derived from the existing gap between managerial practices and ownership structure. This research contributes to the literature review, analyzing the relationship between the board characteristics, audit firms, and a set of indicators taken as proxies of performance. Based on a dataset of 124 non-financial companies, a linear model was regressed. We found that some characteristics of board of directors significantly influence the companies’ performance. These new insights can also provide new guidelines for policy makers towards the establishment of new common rules and principles that accurately grant the efficiency of corporate governance mechanisms and ensure the desired international comparability.

The modernization of corporate governance aims the alignment of the interests of managers with those of companies, promoting a new discipline of internal controls and risk analysis with an enforcement of shareholder rights of information. This research investigates the impact of corporate governance variables-ownership, board of directors and remuneration committee-on executive compensation. A balanced sample of 52 Italian listed companies has been adopted to test the hypotheses, covering 55.98% and 47.13% of market capitalization in 2011 and 2015 respectively and including 669 board members. Theoretical models evidence a certain stability of compensation schemes for Italian managers over time. Findings suggest that there is a statistically significant positive effect of familiar ownership on the amount of compensation. Along with nature of ownership, the number of directors in the remuneration committee appointed by minorities assume a determinant role. With statistical significance, it affects negatively the compensation level, but, contrarily to best practices, it affects negatively the adoption of forms of incentive compensation.

The research examines how board diversity and choice of auditing firm, as mechanisms of corporate governance, affect the profitability of Iberian companies. Using information from an adjusted sample of 93 non-financial companies listed on the Iberian stock exchanges, a theoretical model was regressed. Profit Margin (PM) and Return on Equity (ROE), as two of the more frequently used profitability measures, capture, at a moderately acceptable level, the impact derived from board diversity and choice of auditing firm among Iberian companies. Most variables cited are not equally distributed across Iberia, in line with Hofstede's cultural dimensions model. The evidence, while inconclusive, provides valuable insight into how governance mechanisms affect performance. In addition, the research provides value to the literature by introducing new proxies on board characteristics, and its impact on dynamic profitability.