Corporate cash holdings in the shipping industry

Ahrends, Meike; Drobetz, Wolfgang; Nomikos, Nikos K.

doi:10.1016/j.tre.2017.10.016

Cited by 23 publications

(4 citation statements)

References 75 publications

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“…However, financial flexibility and the need to preserve it is identified as one the most important factors in shaping financial decision making (see surveys by Graham & Harvey, 2001;Bancel & Mittoo, 2004;Brav et al, 2005;Brounen et al, 2006). In this respect Ahrends et al (2018) find that maritime companies practice a more conservative cash-holding policy, indicating an effort to maintain financial flexibility. Thus, we expect that maritime companies will exhibit a lower degree of dividend smoothing, where dividend changes trace more closely changes in profitability.…”

Section: Methodsmentioning

confidence: 99%

“…menos et al, 2008;Drobetz et al, 2013;Maniati & Sambracos, 2017). The maritime sector's high-risk profile has shaped certain aspects of firm's financial decision-making such as a conservative cash-holding policy (Ahrends et al, 2018) and a higher capital structure speed of adjustment (Drobetz et al, 2013). However, dividend dynamics in this sector have not been investigated (Alexandridis et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Dividend Dynamics in the Shipping Industry: A Panel Data Analysis of Partial Adjustment Models

Chasiotis¹,

Konstantios²,

Naoum³

2021

TEL

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This study explores the dividend dynamics of globally-listed firms in the idiosyncratic maritime sector. Employing an array of dynamic panel estimators in a sample of globally-listed shipping firms for the period 1988 to 2019 we provide empirical evidence that the degree of dividend smoothing (speed of adjustment) in the maritime sector is comparatively lower (higher). We also show that the speed of adjustment after deviations from the target is significantly higher in recession states. Our results document higher flexibility in the shipping industry's dividend payouts, reflecting its distinct traits that amplify the adverse impacts of financing shocks.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Dividend Dynamics in the Shipping Industry: A Panel Data Analysis of Partial Adjustment Models

Chasiotis¹,

Konstantios²,

Naoum³

2021

TEL

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“…The authors additionally included firm size (SI) in control variables, which is in accordance with Liu et al (2022); Gavalas et al (2022a); Ahrends et al (2018). According to the principle of economies of scale, more manufacturing units are used to spread out the cost of production, both fixed and variable expenses included.…”

Section: Explanatory Variablesmentioning

confidence: 99%

Does sustainability reporting affect firm performance? Evidence from the port sector

Gavalas

2023

Marit. Technol. Res.

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Given that stakeholders are paying more and more attention to the environmental, social, and governance (ESG) policies of firms, the objective of this paper is to study the effect of ESG disclosure on firm performance, focusing on companies involved in port activities; precisely, (i) a port company/authority, (ii) a terminal operator/stevedore, and (iii) an integrated carrier. The study contributes to the existing knowledge by incorporating ESG scores and looking at factors that indicate financial strength. The contribution of our study will lie in complementing and adding to the existing knowledge, along with further incentivizing sustainable firm performance. This study discovers that a positive relationship between ESG disclosure, firm value, and firm performance exists, as determined by market-to-book ratio and Q ratio, respectively. It considers a panel regression examination, by means of a sample of 213 publicly listed ports and considering a time period of 5 years. This study will benefit scholars, decision-makers, legislators, and stakeholders of ports through improving their comprehension of how ESG disclosure affects the performance of firms, in general and specifically for each pillar. Highlights The aim of the present study is to examine the impact of ESG (environmental, social, and governance) disclosure on the performance of firms that are engaged in port-related operations. More specifically, our focus is on three types of companies, namely, a port company/authority, a terminal operator/stevedore, and an integrated carrier The present study has found that a favorable correlation exists between ESG disclosure, firm value, and firm performance, as gauged by the market-to-book ratio and Q ratio, correspondingly The study conducts a panel regression analysis, utilizing a sample of 213 publicly listed ports over a time period of five years This study will be advantageous to scholars, decision-makers, legislators and stakeholders in the port industry, as it enhances their understanding of how ESG disclosure impacts firm performance, both globally and within each distinct pillar

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“…Some studies in the maritime shipping industry use net working capital as an independent variable to investigate other phenomena, but not as a dependent variable to empirically investigate trade credit as an alternative source of capital. For example, Ahrends et al (2018) use net working capital, as a determinant of maritime shipping companies' level of corporate cash holdings. Likewise, Kotcharin and Maneenop (2020) utilize net working capital, as one of the independent variables, to examine cash holding decisions of maritime shipping companies under geopolitical risk.…”

Section: Introductionmentioning

confidence: 99%

Determinants and effects of trade credit financing: Evidence from the maritime shipping industry

Mantzari,

Merika,

Sigalas

2023

Euro Fin Management

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This paper investigates the factors and effects of trade credit, as an alternative source of capital, by employing a generalized method of moments instrumenting for endogeneity based on a panel data set of public maritime shipping companies and compatible companies in other industries. Our study shows that the magnitude of trade credit is affected by profitability, financial leverage, company size, cost of capital, financial distress, institutional ownership, corporate power, corporate liquidity, asset intensity, and corporate growth. It also suggests that trade credit affects financial performance, equity value, and risk. These empirical findings yield important implications for principal financial officers, as discussed herein.

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Corporate cash holdings in the shipping industry

Cited by 23 publications

References 75 publications

Dividend Dynamics in the Shipping Industry: A Panel Data Analysis of Partial Adjustment Models

Dividend Dynamics in the Shipping Industry: A Panel Data Analysis of Partial Adjustment Models

Does sustainability reporting affect firm performance? Evidence from the port sector

Determinants and effects of trade credit financing: Evidence from the maritime shipping industry

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