The corporate governance model of the shipping firms: financial performance implications

The corporate governance model of the shipping firms: financial performance implications

The corporate governance model of the shipping firms is under extensive dynamic adjustment. Core reasons for that include the corporate transformation of the shipping firms from private and family run into publicly listed and multi-shareholder entities and a number of strict stock market listing req...

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Bibliographic Details
Published in:Maritime policy and management 2011-11, Vol.38 (6), p.585-604
Main Authors: Syriopoulos, Theodore, Tsatsaronis, Michael
Format: Article
Language:eng
Subjects:
Case studies
Corporate governance
Dynamics
Empirical analysis
Empirical methods
Enterprises
Equity
Executives (Business)
Family corporations
Financial performance
Governance
Government and politics
Greece
Management
Maritime law
Markets
Ownership
Participation
Property rights
Public sector
Raw materials
Shipping
Shipping industry
Stock exchanges
Transformations
United States
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Summary:The corporate governance model of the shipping firms is under extensive dynamic adjustment. Core reasons for that include the corporate transformation of the shipping firms from private and family run into publicly listed and multi-shareholder entities and a number of strict stock market listing requirements, related to corporate governance in particular. Despite these profound shifts, relevant empirical research in this field remains thin. This study undertakes an updated empirical investigation to assess the impact of key corporate governance mechanisms on the financial performance of the shipping firms, namely: (1) the presence of managerial executives (CEOs) related to the founding family; (2) the ownership concentration (shares held) by Board of Directors members; and (3) the participation of independent members in the Board of Directors. A carefully selected sample of Greek shipping companies listed on US equity markets is employed as a case study. We conclude that shipping firms follow their own corporate governance model that has idiosyncratic divergences from conventional governance approaches. A comparison between Greek and Scandinavian shipping firms indicates some differing financial performance response to common corporate governance practices.
ISSN:0308-8839
1464-5254