Solvency and Liquidity in Shipping Companies
This study examines factors affecting the solvency of shipping firms. The paper uses a panel dataset and employs the GLM and FGLS regression analyses. This study explores the financial structure of top 130 shipping firms provided by the Factiva database during the period between 2009 and 2013. The p...
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| Format: | Article |
| Language: | English |
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Elsevier
2016-12-01
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| Series: | Asian Journal of Shipping and Logistics |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2092521216300839 |
| _version_ | 1811270127710109696 |
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| author | Heejung Yeo |
| author_facet | Heejung Yeo |
| author_sort | Heejung Yeo |
| collection | DOAJ |
| description | This study examines factors affecting the solvency of shipping firms. The paper uses a panel dataset and employs the GLM and FGLS regression analyses. This study explores the financial structure of top 130 shipping firms provided by the Factiva database during the period between 2009 and 2013. The paper finds that liquidity is closely related to the leverage of shipping companies. The negative association between the asset liquidity and the leverage level implies that there exist conflicts of interest between managers and investors. Shipping firms have a comfortable high liquidity position, but they have a high degree of leverage. They need to take steps to reduce debts. There is evidence of heterogeneity in the determinants of leverage level. The paper also finds that the variables such as profitability, FSIZE, FAGE influence differently the leverage level whether the debt is short-term or long-term. |
| first_indexed | 2024-04-12T21:55:08Z |
| format | Article |
| id | doaj.art-99e1dbf6c2e54ee285ec5f1254c604e3 |
| institution | Directory Open Access Journal |
| issn | 2092-5212 |
| language | English |
| last_indexed | 2024-04-12T21:55:08Z |
| publishDate | 2016-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Asian Journal of Shipping and Logistics |
| spelling | doaj.art-99e1dbf6c2e54ee285ec5f1254c604e32022-12-22T03:15:21ZengElsevierAsian Journal of Shipping and Logistics2092-52122016-12-0132423524110.1016/j.ajsl.2016.12.007Solvency and Liquidity in Shipping CompaniesHeejung YeoThis study examines factors affecting the solvency of shipping firms. The paper uses a panel dataset and employs the GLM and FGLS regression analyses. This study explores the financial structure of top 130 shipping firms provided by the Factiva database during the period between 2009 and 2013. The paper finds that liquidity is closely related to the leverage of shipping companies. The negative association between the asset liquidity and the leverage level implies that there exist conflicts of interest between managers and investors. Shipping firms have a comfortable high liquidity position, but they have a high degree of leverage. They need to take steps to reduce debts. There is evidence of heterogeneity in the determinants of leverage level. The paper also finds that the variables such as profitability, FSIZE, FAGE influence differently the leverage level whether the debt is short-term or long-term.http://www.sciencedirect.com/science/article/pii/S2092521216300839LeverageSolvencyLiquidityCapital StructureShipping Company |
| spellingShingle | Heejung Yeo Solvency and Liquidity in Shipping Companies Asian Journal of Shipping and Logistics Leverage Solvency Liquidity Capital Structure Shipping Company |
| title | Solvency and Liquidity in Shipping Companies |
| title_full | Solvency and Liquidity in Shipping Companies |
| title_fullStr | Solvency and Liquidity in Shipping Companies |
| title_full_unstemmed | Solvency and Liquidity in Shipping Companies |
| title_short | Solvency and Liquidity in Shipping Companies |
| title_sort | solvency and liquidity in shipping companies |
| topic | Leverage Solvency Liquidity Capital Structure Shipping Company |
| url | http://www.sciencedirect.com/science/article/pii/S2092521216300839 |
| work_keys_str_mv | AT heejungyeo solvencyandliquidityinshippingcompanies |