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Economic performance and corporate financial management of shipping firms

Author

Listed:
  • Hyo-Won Kang

    (Sea Grant, University of Southern California)

  • Grace W Y Wang

    (Department of Maritime Administration, Texas A&M University at Galveston)

  • Hee-Seok Bang

    (Department of International Logistics, Chung-Ang University)

  • Su-Han Woo

    (Department of International Logistics, Chung-Ang University)

Abstract

In an increasingly competitive environment, the importance of the economic performance of the maritime sector has been emphasized in the research of the past two decades. Recently, shipping firms have increasingly entered stock markets as an alternative source of finance, avoiding thus excessive debt exposure. It is here considered necessary to use performance measures which combine shareholders’ values with aspects of organizational management. Economic Value Added and Tobin’s Q are used to evaluate the economics performance of shipping firms. Main elements of financial management are used to investigate the determinants of economic performance of shipping companies. 64 international shipping companies listed in Bloomberg Shipping Indices are included in our sample. A panel regression is used to examine the impact of financial strategies on performance, across three market segments. This analysis provides shipping companies with managerial and strategic insights on how financial options influence economic performance. We identify unique common performance-determining characteristics such as operational ones; profitability; and leverage ratio; among tanker, dry bulk and container shipping markets.

Suggested Citation

  • Hyo-Won Kang & Grace W Y Wang & Hee-Seok Bang & Su-Han Woo, 2016. "Economic performance and corporate financial management of shipping firms," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 317-330, September.
    • Handle: RePEc:pal:marecl:v:18:y:2016:i:3:d:10.1057_mel.2015.8
    DOI: 10.1057/mel.2015.8
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    References listed on IDEAS

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    4. Pache, Hannah & Grafelmann, Michaela & Schwientek, Anne Kathrina & Jahn, Carlos, 2020. "Tactical planning in tramp shipping - A literature review," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Data Science in Maritime and City Logistics: Data-driven Solutions for Logistics and Sustainability. Proceedings of the Hamburg International Conferen, volume 30, pages 281-308, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    5. Su-Han Woo & Min-Su Kwon & Kum Fai Yuen, 2021. "Financial determinants of credit risk in the logistics and shipping industries," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(2), pages 268-290, June.
    6. Kian-Guan Lim & Michelle Lim, 2020. "Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-25, December.

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