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A critical review of the literature on firm-level theories on ship investment

Citation

Celik Girgin, S and Karlis, T and Nguyen, H-O, A critical review of the literature on firm-level theories on ship investment, International Journal of Financial Studies, 6, (1) pp. 11-30. ISSN 2227-7072 (2018) [Refereed Article]


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Copyright Statement

2018 The Authors. Licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) https://creativecommons.org/licenses/by/4.0/

DOI: doi:10.3390/ijfs6010011

Abstract

The maritime industry is one of those rare industries that are both highly international integrated to international trade and also highly capital intensive dependent on substantial investment amount. In the literature, ship investments have not been widely examined through the firm-level investment theories to explore the link between investment level and asset price valuation. The general trend in the literature of ship investments is to analyse the relationship among the shipping markets (newbuilding, second-hand, freight rate and scrap) and their impact on asset price valuation, the timing of investments and market entry and exit conditions. In this paper, we extensively reviewed the literature of firm-level investment theories and ship investments. We showed that the application of firm-level investment theories to the ship investments is confined to the basic investment valuation models, such as Net Present Value and Real Option Analysis. Ship investments need to be examined by firm-level investment theories to define firm/industry value maximization level within the approach of the solid investment theories

Item Details

Item Type:Refereed Article
Keywords:investment theories, microeconomics, ship investments, maritime industry
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation and Freight Services
Research Field:Transportation and Freight Services not elsewhere classified
Objective Division:Transport
Objective Group:Water Transport
Objective Field:International Sea Freight Transport (excl. Live Animal Transport)
UTAS Author:Celik Girgin, S ( Sinem Celik Girgin)
UTAS Author:Karlis, T (Professor Athanasios Karlis)
UTAS Author:Nguyen, H-O (Associate Professor Oanh Nguyen)
ID Code:123903
Year Published:2018
Web of Science® Times Cited:1
Deposited By:NC Maritime Engineering and Hydrodynamics
Deposited On:2018-01-31
Last Modified:2019-07-31
Downloads:29 View Download Statistics

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