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

See all articles by Andreas Andrikopoulos

Andreas Andrikopoulos

University of the Aegean - Department of Business Administration

Anna Merika

American College of Greece (DEREE)

Christos Sigalas

American College of Greece (DEREE)

Date Written: April 29, 2021

Abstract

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

Andrikopoulos, Andreas and Merika, Anna and Sigalas, Christos, Net Asset Value Discounts and Premiums in Maritime Shipping Industry (April 29, 2021). Forthcoming, European Financial Management, (2021) https://doi.org/10.1111/eufm.12313, Available at SSRN: https://ssrn.com/abstract=3866957

Andreas Andrikopoulos (Contact Author)

University of the Aegean - Department of Business Administration ( email )

8 Michalon Str
Chios, GR 82 100
Greece

Anna Merika

American College of Greece (DEREE) ( email )

Gravias 6,
Aghia Paraskevi
Athenes, 153-42
Greece

Christos Sigalas

American College of Greece (DEREE) ( email )

Gravias 6,
Aghia Paraskevi
Athenes, 153-42
Greece

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