The exposure of shipping firms' stock returns to financial risks and oil prices: A global perspective

A.A. El-Masry, M. Olugbode, J. Pointon

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

Shipping is an industry that is highly geared towards international trade and therefore, would seem to be highly susceptible to fluctuations in macroeconomic factors. This article investigates the impact of exchange rates, interest rates and oil prices on stock returns of 143 shipping companies from 16 countries. We also investigate the factors which determine the extent to which firm are sensitive to macroeconomic variables. Our results indicate that the low incidence of significant exposure to exchange rate and interest rates suggests that most shipping firms have utilised reasonably successful hedging strategies to reduce the impact of these macroeconomic risks. Finally, we find that, for the minority of shipping firms significantly affected by oil price increases, the effects have usually been beneficial.

Original languageEnglish
Pages (from-to)453-473
Number of pages21
JournalMaritime Policy and Management
Volume37
Issue number5
DOIs
Publication statusPublished - 5 Oct 2010
Externally publishedYes

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global perspective
oil price
shipping
Freight transportation
macroeconomics
firm
oil
interest rate
exchange rate
International trade
rate of exchange
international trade
world trade
economic factors
fluctuation
Industry
incidence
minority
price
exposure

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The exposure of shipping firms' stock returns to financial risks and oil prices: A global perspective. / El-Masry, A.A.; Olugbode, M.; Pointon, J.

In: Maritime Policy and Management, Vol. 37, No. 5, 05.10.2010, p. 453-473.

Research output: Contribution to journalArticle

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