The motives for shipping asset securitisation: sale-leaseback transactions in the shipping industry

Yoon, Sangho; Kim, Chi Yeol; Seo, Young-Joon

doi:10.1080/03088839.2021.1983218

Cited by 5 publications

(2 citation statements)

References 35 publications

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“…In stark contrast to research highlighting the real estate market, the SLB is an emerging topic in the maritime spectrum, and consequently, an under-explored research area. The only exception, to the best of our knowledge, is Yoon et al (2023), who investigated the drivers of going for SLBs among Korean shipping companies. They find that shipping companies enter into SLBs to acquire financial liquidity from the capital obtained from selling ships.…”

Section: Mabr 84mentioning

confidence: 99%

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The announcement effect of shipping sale-and-leaseback transactions

Yoon,

Kim

2023

MABR

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PurposeThis paper investigates the announcement effect of shipping sale-and-leaseback (SLB) transactions. As an emerging source of financing, a growing deal of interest has been paid to the SLB. However, little is known about a variety of aspects of SLB transactions in the shipping industry. In this regard, this study examines the stock market reaction to the SLB announcements of shipping firms and their impact on shareholders' wealth.Design/methodology/approachA sample of 15 shipping SLB deals commenced by publicly-listed Korean shipping companies during 2009–2023 are examined in this research. The announcement effect is measured by abnormal returns (AR) of their stocks based on the event study analysis.FindingsIt is found that the AR on the shipping SLB announcement date is, on average, −0.84% while there is no statistical significance. However, the results indicate that shareholders of shipping companies engaging in large-sized SLBs can experience positive AR around the announcement date.Originality/valueThis study is the first attempt to investigate the announcement effect of SLB transactions on the shipping industry and their impact on shareholders' wealth. The findings in this research can offer implications for the financing decisions of shipping companies and investment decisions of stock investors.

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Section: Mabr 84mentioning

confidence: 99%

“…In addition, Smith and Wakeman (1985) identify nontax drivers of SLBs such as financial contracting costs, financial distress and capital constraints. In the shipping literature, Yoon et al. (2023) find that securing financial liquidity is a main driver of going for SLBs.…”

Section: Introductionmentioning

confidence: 99%