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The Impact of Corporate Governance and the Cost of Capital in Shipping

Author

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  • Vicky Zampeta

    (PhD Candidate, Department of Maritime Studies, University of Piraeus, Greece)

Abstract

Purpose - The main aim of this paper is to analyze the impact of corporate governance and the cost of capital in shipping industry. The present study grasps on a doctoral thesis aiming to analyze the above developments in the shipping industry in general and mostly in the Greek owed shipping companies and how these developments have been evaluated by the top executives based on a market research we have conducted. Design/methodology/approach - The main idea for the consolidation of the results of the regression methodology used is to analyze research hypotheses related to effects of Corporate Governance in the shipping industry, emerged in a previous article by Zampeta (2011) and Thalassinos and Zampeta (2012). The research hypotheses will be explored with econometric methodology to be confirmed or rejected depending on the statistical significance of the coefficients of the factors - variables selected and express their respective cases. The specific way of analyzing the answers from the questionnaires used sufficiently cover the concept of triangulation (triangulation) because they use primary research data (sample analysis questionnaires), with acceptable bibliography concerning the impact of globalization and the evolution international trade financing cost of shipping enterprises. There is a need to exploit the results of the factorial analysis used by Zampeta (2011), Thalassinos and Zampeta (2012) and Thalassinos and Zampeta (2015) to the methodology of regression to analyze research hypotheses related to the Factor of the Cost of Capital and the Factor of Corporate Governance and their impacts in the Shipping Industry. Findings - The results of the subject research confirm the views of the top executives that specific explanatory variables are forming the factors referring to corporate governance and the cost of capital in the shipping industry. In addition, they have influenced the decision of the shipping companies to adopt the Corporate Governance structure in order to exploit the benefits of international integration of capital markets. Based on this result, more and more maritime firms have adopted the principles of Corporate Governance as an effective tool to deal with globalization and the cost of capital in the subject industry. Research limitations/implications - Lack of statistical data with respect to financial indexes in addition to the small number of companies indexed in stock exchanges. The structure of the questionnaire has some limitations with respect to the total number of sub-questions describing the exact nature of the financial system followed by each company. Very limited bibliography on the issue. Originality/value - The approach followed in this study gives a particular interest in the results and create originality because it combines different methodologies aimed at similar research hypotheses as presented in the paper.

Suggested Citation

  • Vicky Zampeta, 2015. "The Impact of Corporate Governance and the Cost of Capital in Shipping," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 8(2), pages 19-34, October.
    • Handle: RePEc:tei:journl:v:8:y:2015:i:2:p:19-34
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    References listed on IDEAS

    as
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    Cited by:

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    2. Panji Priyanto & Titik Aryati, 2023. "The Effect of Earning Management, Growth Opportunity, and Capital Structure on Company Value with Audit Quality as Moderating Variable," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 133-148.
    3. Younis A. Battal Saleh, 2023. "Using the Concept of Precedence as an Approach to Explain the Logical Interaction and Interrelationships among Corporate Social Responsibilities: Battal 's CSR Train Vs. Carroll ′s CSR Pyramid," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(1), pages 27-78.
    4. Redie Bezabih Hailu, 2023. "Factors Affecting the Attitude of Government Employees towards Monetary Saving," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(1), pages 88-101.
    5. Czeslawa Christowa, 2023. "Safety Management in Polish Seaports: Identification and Analysis of Threats," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 615-631.
    6. Fadoi Elleuch, 2023. "The "Lateral Transshipment" Is a Cooperative Tool for Optimizing the Profitability of a Distribution System," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(1), pages 128-151.
    7. Andrzej S. Grzelakowski, 2023. "Global Maritime Container Carriers' Mid-term Strategies as a Tool for Change Management in the Post-Covid Era," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 737-754.
    8. Ilona & Urbanyi-Popiolek, 2023. "Development of the Ferry and Ro-Ro Industry in an Uncertain Environment," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 855-864.

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    More about this item

    Keywords

    corporate governance; corporate restructuring; shipping industry;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • F3 - International Economics - - International Finance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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