Drobetz, Wolfgang
[VerfasserIn]
;
Janzen, Malte
[Sonstige Person, Familie und Körperschaft];
Requejo, Ignacio
[Sonstige Person, Familie und Körperschaft]
Capital Allocation and Ownership Concentration in the Shipping Industry
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 28, 2018 erstellt
Beschreibung:
We measure the sensitivity of investment to changes in investment opportunities in the shipping industry and test whether this relation is moderated by ownership concentration. For a sample of 126 globally listed shipping firms, we find that investment in commercial shipping follows freight rates, a measure of the potential income stream from owning a vessel. Ownership concentration, measured as the ownership stake of the largest shareholder, reinforces the positive effect of freight rates on investment, indicating a higher relative efficiency of capital allocation. The positive impact ownership has on the investment-freight rate sensitivity also translates into higher firm value. An analysis of investor identity shows that our results are driven by the group of firms where the largest owner is a financial investor, who is usually more focused on shareholder value maximization