Determinants of the probability of default: the case of the internationally listed shipping corporations. Issue 7 (3rd October 2017)

• Record Type: Journal Article
• Authors: Lozinskaia, Agata; Merikas, Andreas; Merika, Anna; Penikas, Henry
• Is Part Of: Maritime policy & management. Volume 44:Issue 7(2017)
• Page Start: 837
• Page End: 858
• Publication Date: 2017-10-03
• Subjects: Shipping industry -- probability of default -- semi-default -- logit model -- ordered logit model; Marine resources -- Periodicals; Shipping -- Management -- Periodicals; Policy sciences -- Periodicals; 333.9164
• DOI: 10.1080/03088839.2017.1345018
• Languages: English
• ISSNs: 0308-8839

Abstract

ABSTRACT: In this study, we use a sample of 192 listed shipping companies and employ a logit model in order to investigate the determinants of the probability of default. We enhance our analysis by isolating not only the cases of company liquidations but also those cases where companies had to change their legal status due to warning liquidity signals. Our key findings are in line with prior research and moreover we depict a changing trend in the marginal effects of relevant variables, on the probability of default. We further show, through an empirical application, how the obtained results can be used in a managerial decision-making process and in a bank credit underwriting process in order to assess the creditworthiness of a shipping company.