Financial Performance Evaluation of Shipping Companies Using Entropy and Grey Relation Analysis

Paul Tae-Woo Lee (), Cheng-Wei Lin and Sung-Ho Shin
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Paul Tae-Woo Lee: Zhejiang University
Cheng-Wei Lin: Kainan University
Sung-Ho Shin: The Hong Kong Polytechnic University

Chapter Chapter 9 in Multi-Criteria Decision Making in Maritime Studies and Logistics, 2018, pp 219-247 from Springer

Abstract: Abstract The international trade of Korea and Taiwan has been heavily dependent upon international sea transportation owing to geo-political aspects. Therefore, the two countries have promoted ocean-going shipping industry in order to support their export-oriented economies. Recent financial crisis in together with the economic slowdown has reduced seaborne trade cargoes, which resulted in remarkably deteriorated revenues of the container shipping sector. Major container shipping companies of both countries such as Evergreen, Yang Ming, Hyundai, and Hanjin under our study are no exception. This chapter aims to achieve two-fold aims. The first applies Entropy to find the relative weights of financial ratios of the four companies each year. In so doing, we can find the weights variance for the period of 1999–2009 based on the financial performance of the above companies. The second aim is to evaluate financial performance of the companies in the period by grey relation analysis. The findings in this chapter help shipping managers to mitigate impacts of the financial crisis on their companies.

Keywords: Entropy; Grey relation analysis; Financial ratio analysis; Container shipping (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/978-3-319-62338-2_9

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