Corporate Cash Holdings in the Shipping Industry

Ahrends, M., Drobetz, W. & Nomikos, N. (2017). Corporate Cash Holdings in the Shipping Industry. Transportation Research Part E: Logistics and Transportation Review,

[img] Text - Accepted Version
Restricted to Repository staff only
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (879kB) | Request a copy
[img]
Preview
Text (Creative Commons: Attribution-Noncommercial-No Derivative Works 4.0) - Other
Download (201kB) | Preview

Abstract

We examine the corporate cash holdings of listed shipping companies and show that shipping firms hold more cash than similar firms in other asset-heavy industries. Higher cash holdings in the shipping industry are not attributable to firm- or country-level characteristics, but rather to the higher marginal value of cash. Shipping firms value an additional dollar of cash higher than matched manufacturing firms, regardless of their financial constraints status, but depending on their cultural background and the cyclicality of their expansion opportunities. Less procyclical shipping firms have a higher marginal value of cash, and this valuation effect is most pronounced in bad times of the business cycle when external capital supply tends to becomescarce.Overall, it appears that shipping companies are more conservative than their peers in managing their cash positions.

Item Type: Article
Additional Information: © 2017 Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Uncontrolled Keywords: Maritime financial management; cash holdings; business cycle; growth opportunities
Divisions: Cass Business School > Faculty of Finance
URI: http://openaccess.city.ac.uk/id/eprint/18468

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics