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The relationship between technical innovation and financial performance in shipping firms

Author

Listed:
  • Andreas A. Kouspos

    (Cyprus University of Technology)

  • Photis M. Panayides

    (Cyprus University of Technology)

  • Dimitris A. Tsouknidis

    (Athens University of Economics and Business)

Abstract

This study investigates the relationship between financial performance and technical innovation of 21 listed shipping firms employing a panel data methodology. Using vessel-level and firm-level data over the period 2013 to 2019, we show that vessels’ technical innovation exhibits a positive relationship with firms’ financial performance. We identify three types of technical innovation for listed shipping firms, namely ice-class, eco, and propulsion types, and show that shipping firms operating eco-type ships exhibit higher financial performance on average during the sample period examined. This result has important implications not least on the decision-making of shipping firms to invest in technically innovative ships.

Suggested Citation

  • Andreas A. Kouspos & Photis M. Panayides & Dimitris A. Tsouknidis, 2023. "The relationship between technical innovation and financial performance in shipping firms," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 25(4), pages 698-727, December.
    • Handle: RePEc:pal:marecl:v:25:y:2023:i:4:d:10.1057_s41278-022-00251-9
    DOI: 10.1057/s41278-022-00251-9
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