TY - JOUR
T1 - The exposure of shipping firms’ stock returns to financial risks and oil prices: a global perspective
AU - El-Masry, Ahmed A.
AU - Pointon, John
AU - Olugbode, Mojisola
PY - 2010/9/1
Y1 - 2010/9/1
N2 - Shipping is an industry that is highly geared towards international trade and therefore, would seem to be highly susceptible to fluctuations in macroeconomic factors. This article investigates the impact of exchange rates, interest rates and oil prices on stock returns of 143 shipping companies from 16 countries. We also investigate the factors which determine the extent to which firm are sensitive to macroeconomic variables. Our results indicate that the low incidence of significant exposure to exchange rate and interest rates suggests that most shipping firms have utilised reasonably successful hedging strategies to reduce the impact of these macroeconomic risks. Finally, we find that, for the minority of shipping firms significantly affected by oil price increases, the effects have usually been beneficial.
AB - Shipping is an industry that is highly geared towards international trade and therefore, would seem to be highly susceptible to fluctuations in macroeconomic factors. This article investigates the impact of exchange rates, interest rates and oil prices on stock returns of 143 shipping companies from 16 countries. We also investigate the factors which determine the extent to which firm are sensitive to macroeconomic variables. Our results indicate that the low incidence of significant exposure to exchange rate and interest rates suggests that most shipping firms have utilised reasonably successful hedging strategies to reduce the impact of these macroeconomic risks. Finally, we find that, for the minority of shipping firms significantly affected by oil price increases, the effects have usually been beneficial.
KW - Exchange rate exposure
KW - Shipping firms
KW - Stock returns
KW - Financial risks and oil prices
UR - https://pearl.plymouth.ac.uk/context/pbs-research/article/1265/viewcontent/12._20The_20exposure_20of_20shipping_20firms__20stock_20returns_20to_20financial_20risks_20and_20oil_20prices__20a_20global_20perspective___20maritime.pdf
U2 - 10.1080/03088839.2010.503713
DO - 10.1080/03088839.2010.503713
M3 - Article
SN - 0308-8839
VL - 37
SP - 453
EP - 473
JO - Maritime Policy and Management: The flagship journal of international shipping and port research
JF - Maritime Policy and Management: The flagship journal of international shipping and port research
IS - 5
ER -