Capital raising of aerospace companies: equities or debts?

4th AEROTECH- Innovation in Aerospace Engineering and Technology

航空航天工程

Hui-Shan, L.^1,2 ; Taw-Onn, Y.^1 ; Wai-Mun, H.^2

Universiti Putra Malaysia, Serdang, Malaysia^1

Universiti Tunku Abdul Rahman, Sungai Long Campus, Malaysia^2

关键词: Aerospace company;    Aerospace products;    Economic activities;    First quarter;    Net incomes;    Research and development;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/152/1/012037/pdf
DOI  :  10.1088/1757-899X/152/1/012037

学科分类：航空航天科学

来源: IOP

【 摘 要 】

Aerospace products enhance national and economic activities, thus maintaining the sustainability of aerospace industry is crucial. One of the perspectives in ensuring sustainability of aerospace companies is expansion of firms by raising funds for research and development in order to provide a reasonable profitability to the firms. This study comprises a sample of 47 aerospace companies from 2009 to 2015 to analyze the impact of raising fund by equities or debts to the profitability of the firms. The result indicates that capital raising through equities is preferable than debts. Moreover, the study also identifies that the profit of aerospace industry is volatile and there is cyclical reduction of the net income in the first quarter of the year. The management needs to make wise decisions in raising fund to ensure a healthy growth of the aerospace company.