Hedging effectiveness in shipping industry during financial crises

Aristeidis Samitas and Ioannis Tsakalos

International Journal of Financial Markets and Derivatives, 2010, vol. 1, issue 2, 196-212

Abstract: This paper investigates the significance of financial derivatives in shipping firms and its potential impact on their firm value. The methodology applied in order to measure firms' value is Tobin's Q. The investigation whether shipping firms can decrease their risk exposure and increase their value by using financial derivatives is considered to be essential. The sample of this study consists of shipping firms which are listed in US stock exchanges where the impact of financial crisis was first seen. The empirical evidence of this paper indicates that the use of derivatives minimise shipping firms' risk exposure and guarantee their growth.

Keywords: hedging effectiveness; financial crisis; risk management; bunker derivatives; freight forward agreements; FFAs; vessel value derivatives; shipping; risk exposure; financial derivatives. (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.inderscience.com/link.php?id=32469 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijfmkd:v:1:y:2010:i:2:p:196-212

Access Statistics for this article

More articles in International Journal of Financial Markets and Derivatives from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().