Net asset value discounts and premiums in the maritime shipping industry. (24th May 2021)

• Record Type: Journal Article
• Authors: Andrikopoulos, Andreas; Merika, Anna; Sigalas, Christos
• Is Part Of: European financial management. Volume 28:Number 2(2022)
• Page Start: 510
• Page End: 544
• Publication Date: 2021-05-24
• Subjects: equity valuation -- net asset value -- net asset value discount -- net asset value premium -- public maritime shipping companies; Finance -- European Union countries -- Periodicals; International finance -- Periodicals; Corporations -- European Union countries -- Finance -- Periodicals; 332.094
• DOI: 10.1111/eufm.12313
• Languages: English
• ISSNs: 1354-7798

Abstract

Abstract: This paper examines net asset value (NAV) discounts and premiums in the setting of the maritime shipping industry. We employ a qualitative study with equity analysts as well as a quantitative study with a unique panel data, to explore and empirically investigate, respectively, the reasons underpinning NAV discounts and premiums. Our findings suggest that deviations of market capitalisation from NAV are associated with firm‐specific factors, such as public maritime shipping companies' capital structure, stock liquidity, fleet acquisition cost, operating performance, institutional ownership, cost of capital, corporate governance, dividend policy, and related party transactions.