Institutional ownership and firm performance in the global shipping industry

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

We examine the effect of institutional investors on the valuation of listed shipping firms. Institutional investors have a positive influence on the market value of shipping firms, confirming that institutional ownership is a “universal” corporate governance mechanism. This valuation effect is more pronounced in firms dominated by institutional investors with a short-term investment horizon. It is also stronger in firms with high stock liquidity, suggesting that short-term investors, through the threat of exit, are able to mitigate agency conflicts and improve corporate governance. Investment regressions indicate that shipping firms with a larger fraction of short-term investors are better able to exploit growth opportunities.

Original languageEnglish
Article number102152
JournalTransportation Research Part E: Logistics and Transportation Review
Volume146
ISSN1366-5545
DOIs
Publication statusPublished - 01.02.2021
Externally publishedYes

Bibliographical note

Funding Information:
The authors are grateful for financial support from the Maritime Economics Research Center (MERC) at Hamburg Business School. We thank three anonymous referees, Simon Döring, Manolis Kavussanos (guest editor), Tizian Otto, and Ignacio Requejo for valuable comments.

Publisher Copyright:
© 2020 Elsevier Ltd

    Research areas

  • Corporate governance, Firm value, Institutional investor, Investment horizon, Shipping industry
  • Management studies

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