Impact of Mergers and Acquisitions on Stock Returns of Tramp Shipping Firms

International Journal of Financial Services Management, Vol. 2, No. 4, pp. 327-343, 2007

21 Pages Posted: 5 Sep 2007 Last revised: 9 Dec 2007

See all articles by Aristeidis Samitas

Aristeidis Samitas

University of the Aegean

Dimitris Kenourgios

National and Kapodistrian University of Athens - Department of Economics

Abstract

This paper examines a new issue in tramp shipping industry - mergers and acquisitions - which led firms in a competition on size, market share and total tonnage. The purpose of this paper is to investigate the behaviour of tramp shipping firms' stock returns, when they announce mergers and acquisitions and how this is portrayed on their stock values. The methodology used is event study analysis and bootstrap. Our sample is constituted by member firms of NASDAQ and NYSE. The empirical results indicate the positive impact that mergers and acquisitions announcements cause in tramp firms' stock returns. The impact of mergers and acquisitions is highly important and play a key role for firms to follow new challenges in shipping industry and create higher financial value.

Keywords: Corporate restructuring, mergers and acquisitions, tramp shipping firms, stock returns, event study, bootstrap

JEL Classification: G24, G34, G12, G15, L92

Suggested Citation

Samitas, Aristeidis and Kenourgios, Dimitris, Impact of Mergers and Acquisitions on Stock Returns of Tramp Shipping Firms. International Journal of Financial Services Management, Vol. 2, No. 4, pp. 327-343, 2007, Available at SSRN: https://ssrn.com/abstract=1012299

Aristeidis Samitas (Contact Author)

University of the Aegean ( email )

8 Michalon str.
Chios
Greece

Dimitris Kenourgios

National and Kapodistrian University of Athens - Department of Economics ( email )

1, Sofokleous Str
Office 521
Athens, 10559
Greece
+30 210 3689449 (Phone)

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