ORCID
- Olugbode, Moji: 0000-0003-2387-0036
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.
DOI
10.1080/03088839.2010.503713
Publication Date
2010-09-01
Publication Title
Maritime Policy and Management: The flagship journal of international shipping and port research
Volume
37
Issue
5
First Page
453
Last Page
473
ISSN
0308-8839
Organisational Unit
Plymouth Business School
Keywords
Exchange rate exposure, Shipping firms, Stock returns, Financial risks and oil prices
Recommended Citation
El-Masry, A. A., Pointon, J., & Olugbode, M. (2010) 'The exposure of shipping firms’ stock returns to financial risks and oil prices: a global perspective', Maritime Policy and Management: The flagship journal of international shipping and port research, 37(5), pp. 453-473. Available at: https://doi.org/10.1080/03088839.2010.503713
