Determinants of Ship Management Revenues: The Case of Cyprus

Nektarios Michail, Konstantinos D. Melas () and Kyriaki G. Louca
Additional contact information
Konstantinos D. Melas: Faculty of Business and Economics, Metropolitan College, 54624 Thessaloniki, Greece
Kyriaki G. Louca: Economic Analysis and Research Department, Central Bank of Cyprus, Nicosia 1076, Cyprus

Economies, 2023, vol. 11, issue 7, 1-12

Abstract: We explore, for the first time in the literature, how the revenues of ship management companies respond to macroeconomic exogenous shocks. Using data for ship-management companies in Cyprus, we find evidence that a demand shock has the largest impact on revenues, exhibiting an almost one-for-one relationship. If the demand shock is permanent, we observe a ceteris paribus permanent effect on revenues. Similarly, this occurs irrespective of the final effect that demand has on the relevant freight rate, proxied via the Baltic dry and tanker (dirty and clean) indices. The BDI and the BDTI indices have a smaller effect on revenues, standing at approximately 0.05% for every 1% shock, while the clean tanker index does not have an effect, most likely due to their fleet composition. In accordance with the literature, we find that a shock in the price of Brent oil increases revenues. Our results bear importance not only for ship management companies per se, but also for countries that are ship management hubs.

Keywords: shipping; ship management; freight rates; Bayesian VAR (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7099/11/7/184/pdf (application/pdf)
https://www.mdpi.com/2227-7099/11/7/184/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:11:y:2023:i:7:p:184-:d:1188838

Access Statistics for this article

Economies is currently edited by Ms. Adore Zhou

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().