Identifying shipowners’ risk attitudes over gains and losses: Evidence from the dry bulk freight market
Giamouzi, M. & Nomikos, N. 
ORCID: 0000-0003-1621-2991 (2020).
Identifying shipowners’ risk attitudes over gains and losses: Evidence from the dry bulk freight market.
Transportation Research Part E: Logistics and Transportation Review, 145,
article number 102129.
doi: 10.1016/j.tre.2020.102129
Abstract
This study examines the risk-return trade-off in the dry bulk freight market under different scenarios such as risk measures, risk attitudes and controlling for variables associated with the freight rate cycle. For long-term contracts, there exists a negative association between risk and return, suggesting that shipowners are willing to offer a discount on time-charter rates over spot rates to compensate for the loss of flexibility. Additionally, shipowners are not uniformly risk averse, as finance theory suggests, since their utility functions are concave (risk-averse) for losses and convex (risk-seeking) for gains.
| Publication Type: | Article |
|---|---|
| Additional Information: | © 2020. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ |
| Publisher Keywords: | Risk Preferences, Prospect Theory, Risk-Return Relationship, Dry-bulk Freight Market, Utility Functions |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HE Transportation and Communications H Social Sciences > HG Finance |
| Departments: | Bayes Business School > Finance |
| SWORD Depositor: |
Available under License Creative Commons Attribution Non-commercial No Derivatives.
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