| Summary: | Airline industry is one of the industries that are known to be capital intensive. Airline companies are known to frequently file for bankruptcy and incur unexpected losses due to rising debt. This trend also applies to some airline companies in ASEAN countries. Hence, this study investigates the determinants of leverage among airline companies in ASEAN countries. A panel data consisting 4 ASEAN airline companies as samples covering from the period of 2006 until 2015 based on the availability of published annual reports. The data was analysed using E-Views version 7. An OLS multiple linear regression estimation was used to measure the relationship between debt ratio (the proxy for leverage) and firm-specific factors namely, tangibility, growth, lease and firm size. According to the empirical analysis results, all the factors have positive relationship towards leverage. In terms of significant variables, the empirical findings showed that only tangibility and firm size are found to have significant relationship with leverage. © 2017 American Scientific Publishers. All rights reserved.
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