I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the …

Operating leverage increases profitability and reduces optimal financial leverage. Thus, operating leverage generates a … negative relation between profitability and financial leverage that is thought to be inconsistent with the trade-off theory …, but is commonly observed in the data. We demonstrate the effect of operating leverage on firms' profitability and …

financial structure that has the purpose of maximizing business performance in the sense of maximizing profitability and return … profitability (measured by rates of return on equity). This paper seeks to answer the question of cause and effect in the context of … financial structure and profitability of the company: whether a certain financial structure (higher or lower indebtedness …