Net Asset Value Discounts and Premiums in Maritime Shipping Industry
Forthcoming, European Financial Management, (2021) https://doi.org/10.1111/eufm.12313
42 Pages Posted: 16 Jun 2021 Last revised: 25 Oct 2021
Date Written: April 29, 2021
This paper examines net asset value (NAV) discounts and premiums in the setting of the maritime shipping industry. We employ a qualitative study with equity analysts as well as a quantitative study with a unique panel data, to explore and empirically investigate, respectively, the reasons underpinning NAV discounts and premiums. Our findings suggest that deviations of market capitalisation from NAV are associated with firm-specific factors, such as public maritime shipping companies’ capital structure, stock liquidity, fleet acquisition cost, operating performance, institutional ownership, cost of capital, corporate governance, dividend policy, and related party transactions.
Keywords: Net Asset Value, Net Asset Value discount, Net Asset Value premium, Equity valuation, Public maritime shipping companies
JEL Classification: G12, G14, G32
Suggested Citation: Suggested Citation