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Impact of mergers and acquisitions on stock returns of tramp shipping firms

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  • Aristeidis G. Samitas
  • Dimitris F. Kenourgios

Abstract

This paper examines a new issue in the tramp shipping industry – mergers and acquisitions – which has drawn firms into a competition on size, market share and total tonnage. The purpose of this paper is to investigate the behaviour of tramp shipping firms' stock returns, when they announce mergers and acquisitions, and how this is portrayed on their stock values. The methodology used is event study analysis and bootstrap. Our sample is constituted by member firms of NASDAQ and NYSE. The empirical results indicate the positive impact that announcements of mergers and acquisitions cause in tramp firms' stock returns. The impact of mergers and acquisitions is highly important and plays a key role for firms to follow new challenges in the shipping industry and create higher financial value.

Suggested Citation

  • Aristeidis G. Samitas & Dimitris F. Kenourgios, 2007. "Impact of mergers and acquisitions on stock returns of tramp shipping firms," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 2(4), pages 327-343.
  • Handle: RePEc:ids:ijfsmg:v:2:y:2007:i:4:p:327-343
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    Citations

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    Cited by:

    1. Andreou, Panayiotis C. & Louca, Christodoulos & Panayides, Photis M., 2012. "Valuation effects of mergers and acquisitions in freight transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1221-1234.
    2. repec:eee:proeco:v:194:y:2017:i:c:p:261-277 is not listed on IDEAS
    3. Alexandrou, George & Gounopoulos, Dimitrios & Thomas, Hardy M., 2014. "Mergers and acquisitions in shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 212-234.
    4. Zhang, Xin & Podobnik, Boris & Kenett, Dror Y. & Eugene Stanley, H., 2014. "Systemic risk and causality dynamics of the world international shipping market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 415(C), pages 43-53.
    5. Ibrahim, M.A., 2013. "Financial Development And Economic Growth In Saudi Arabian Economy," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 133-144.
    6. Grammenos, Costas Th. & Papapostolou, Nikos C., 2012. "US shipping initial public offerings: Do prospectus and market information matter?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 276-295.
    7. repec:eee:proeco:v:193:y:2017:i:c:p:781-797 is not listed on IDEAS

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