CAPITAL MARKETS AS A SOURCE OF THE SHIPPING INDUSTRY FINANCING
Abstract
The objective of the article is to study the features of capital markets as a source of financing for the shipping industry. The relevance of the article is that traditional sources of financing for the shipping industry do not cover the growing needs of shipping companies, so these companies use international stock and bond markets as an alternative to banking instruments. The following methods were used in the study: dialectical, generalization, comparison, system analysis, observation, induction and deduction, graphical. The study characterized the factors influencing the popularity of alternative sources of financing for shipping – due to increased decarbonization requirements, the need to finance the construction, acquisition or modernization of ships; debt refinancing; working capital support; diversification of attracted resources; expansion of the customer base, geographic coverage and range of services. The key advantages and disadvantages of capital markets as a source of financing for the shipping industry are identified, namely: advantages – convenience, timeliness, flexibility, competitiveness, information content, risk hedging; disadvantages – dependence on the general market situation and external events, information asymmetry, cost of resources, unpredictability of investor behavior. The dynamics of the stock returns of the five largest shipping companies in comparison with other sectors of the economy over the past five years is analyzed and it is found that in the long term, the stocks of shipping companies are more profitable than the average value of companies in other sectors of the economy, which confirms the investment attractiveness of the stocks of the shipping industry. It is noted that the formation of strategies of shipping companies in the global capital markets plays an important role in the efficiency of providing them with financial resources. The practical value of the article lies in specifying the key criteria for the choice of capital markets by shipping companies as a source of financing for the shipping industry, as well as in determining the consequences of this growing trend, which can be used by shipping companies when forming their own strategies in the capital markets.
References
Syriopoulos T. Shipping finance and international capital markets. The Handbook of Maritime Economics and Business. 2010. P. 811–849. URL: https://www.researchgate.net/publication/303836424_Shipping_finance_and_international_capital_markets
Veraros N. Modern issues in shipping finance. Paper Presentation. Greece, University of the Aegean. 2008.
Wang Y. The impact of information asymmetry on investment behavior in the stock market. Highlights in Business, Economics and Management. 2023. Volume 19. P. 165–170. DOI: https://doi.org/10.54097/hbem.v19i.11867
Seok S., Cho H., Ryu D. Dual effects of investor sentiment and uncertainty in financial markets. The Quarterly Review of Economics and Finance. 2024. Volume 95. P. 300–315. DOI: https://doi.org/10.1016/j.qref.2024.04.006
Ioannidis L. Alternative sources of shipping finance: Private equity funds. Internetional Hellenic University. 2020. URL: https://repository.ihu.edu.gr/xmlui/bitstream/handle/11544/29897/Ioannidis.Loukas.pdf
Сєнько О. В., Задерей А. Є. Фінансове забезпечення підвищення ефективності судноплавного ринку. Економічний вісник Донбасу. 2021. № 3 (65). С. 99–104. DOI: https://doi.org/10.12958/1817-3772-2021-3(65)-99-104
How ship financing can speed the age of greener propulsion. Societe Generale. URL: https://wholesale.banking.societegenerale.com/en/news-insights/all-news-insights/news-details/news/how-ship-financing-can-speed-the-age-of-greener-propulsion/
Basel IV and the changing face of ship finance. The Banker. URL: https://www.thebanker.com/Basel-IV-and-the-changing-face-of-ship-finance2-1705483009
Commodities derivatives. Clarksons. URL: https://www.clarksons.com/glossary/commodities-derivatives/
MOL to Become World's 1st Shipping Company to Issue Blue Bonds. URL: https://www.mol.co.jp/en/pr/2023/23150.html
Koyfin. URL: https://app.koyfin.com/
10 Biggest Shipping Companies. Investopedia. URL: https://www.investopedia.com/10-biggest-shipping-companies-5077534
Dligach A., Kopylova O., Krasnostanova N. La formación de la estrategia de una sociedad anónima en el mercado de valores. REICE: Revista Electrónica De Investigación En Ciencias Económicas. 2023. Vol. 11(21). P. 139–163. DOI: https://doi.org/10.5377/reice.v11i21.16549
Syriopoulos T. (2010) Shipping finance and international capital markets. The Handbook of Maritime Economics and Business, рр. 811–849. Available at: https://www.researchgate.net/publication/303836424_Shipping_finance_and_international_capital_markets
Veraros N. (2008) Modern issues in shipping finance. Paper Presentation. Greece, University of the Aegean.
Wang Y. (2023) The impact of information asymmetry on investment behavior in the stock market. Highlights in Business, Economics and Management, vol. 19, pp. 165–170. DOI: https://doi.org/10.54097/hbem.v19i.11867
Seok S., Cho H., Ryu D. (2024) Dual effects of investor sentiment and uncertainty in financial markets. The Quarterly Review of Economics and Finance, vol. 95, pp. 300–315. DOI: https://doi.org/10.1016/j.qref.2024.04.006
Ioannidis L. (2020) Alternative sources of shipping finance: Private equity funds. International Hellenic University. Available at: https://repository.ihu.edu.gr/xmlui/bitstream/handle/11544/29897/Ioannidis.Loukas.pdf
Sienko O. V., Zaderei A. Ye. (2021) Finansove zabezpechennia pidvyshchennia efektyvnosti sudnoplavnoho rynku [Financial support for increasing the efficiency of the shipping market]. Ekonomichnyi visnyk Donbasu, vol. 3 (65), pp. 99–104. DOI: https://doi.org/10.12958/1817-3772-2021-3(65)-99-104 (in Ukrainian)
How ship financing can speed the age of greener propulsion. Societe Generale. Available at: https://wholesale.banking.societegenerale.com/en/news-insights/all-news-insights/news-details/news/how-ship-financing-can-speed-the-age-of-greener-propulsion/
Basel IV and the changing face of ship finance. The Banker. Available at: https://www.thebanker.com/Basel-IV-and-the-changing-face-of-ship-finance2-1705483009
Commodities derivatives. Clarksons. Available at: https://www.clarksons.com/glossary/commodities-derivatives/
MOL to Become World's 1st Shipping Company to Issue Blue Bonds. Available at: https://www.mol.co.jp/en/pr/2023/23150.html
Koyfin. Available at: https://app.koyfin.com/
10 Biggest Shipping Companies. Investopedia. Available at: https://www.investopedia.com/10-biggest-shipping-companies-5077534
Dligach A., Kopylova O., Krasnostanova N. (2023). La formación de la estrategia de una sociedad anónima en el mercado de valores. REICE: Revista Electrónica De Investigación En Ciencias Económicas, 11(21), pp. 139–163. DOI: https://doi.org/10.5377/reice.v11i21.16549
This work is licensed under a Creative Commons Attribution 4.0 International License.
