Modelling the investment decision of the entrepreneur in the tanker sector: choosing between a second-hand vessel and a newly built one

Merikas, Andreas; Merika, Anna; Koutroubousis, George

doi:10.1080/03088830802352053

Cited by 39 publications

(21 citation statements)

References 13 publications

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“…This study may be able to contribute to a better understanding of the role of S&P in shipping companies and provide stakeholders with valuable insights. It also seems to complement previous academic research that focused on a business perspective criterion (M 1 ), such as the ship size [13,15] and market environment perspective criteria (M 2 ), such as the change in the number of orders and ships delivered [22], and fleets and throughput [40].…”

Section: Discussionmentioning

confidence: 93%

“…Most researchers adopt a business perspective focusing on the ship size (e.g., Handysize, Aframax, and Suezmax) or a market environment perspective focused on the change in the number of orders and delivery of ships, fleets, and throughput of major freight categories [13,14]. Merikas et al [15] introduced the variable of the price ratio of second-hand ship and new shipbuilding as a decision-making tool and main determinant, in accordance with the theory of finance. Amir and Nomikos [16] argued that freight should be recognized as a priority factor because the prices of second-hand ships and newbuilding change according to freight volatility in the shipping industry.…”

Section: Literature Reviewmentioning

confidence: 99%

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Ship Acquisition of Shipping Companies by Sale & Purchase Activities for Sustainable Growth: Exploratory Fuzzy-AHP Application

et al. 2018

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Strengthening sale and purchase (S&P) capacity has become a fundamental requirement for sustainable growth and corporate competitiveness in the modern shipping market. However, there is a lack of research related to S&P and its priority when shipping companies attempt to implement ship acquisition through S&P activities. To fill this gap, this paper conducts an empirical analysis to analyze priority factors during the acquisition of second-hand ships from the perspective of shipping companies. Business criteria are considered to be the most important factors in the analysis of the priority of ship acquisition and investment in shipping companies. To the best of our knowledge, this research is the first exploration covering Korean shipping companies' ship acquisition through S&P activities. This study is expected to contribute to the better understanding of the role of S&P in ensuring the sustainability of shipping companies and to provide stakeholders with valuable insights.

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Section: Discussionmentioning

confidence: 93%

Section: Literature Reviewmentioning

confidence: 99%

Ship Acquisition of Shipping Companies by Sale & Purchase Activities for Sustainable Growth: Exploratory Fuzzy-AHP Application

et al. 2018

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“…The herd behaviour among bulk ship-owners was examined by the cross-sectional absolute deviation (CSAD), through asset-return and vessel price valuation methods widely applied by scholars; such as price-earnings (PE) ratio (Alizadeh and Nomikos 2007) and second-handnewbuilding price (SHNB) ratio (Merikas et al 2008). They detected unintentional herding behaviour while deciding to have newbuilding and scrapping existing vessel.…”

Section: Dry Bulk Shipping Marketmentioning

confidence: 99%

“…However, the studies in bulk shipping are confronted with low availability of firm-level data. Therefore, industry-level data is mostly used in studies on the bulk shipping (Alizadeh and Nomikos 2007;Merikas et al 2008;Tsolakis et al 2003). Depending on data availability, firm-level investment theories can be applied on industry level in bulk shipping and on firm and industry level in container shipping.…”

Section: Overview Of Ship Investmentsmentioning

confidence: 99%

“…Merikas, Merika and Koutroubousis (Merikas et al 2008) had seminal study in tanker carrier; they introduced a variable of the ratio of second-hand price over the newbuilding price (SH/NB) as a useful decision-making tool in the tanker market. They used SH/NP ratio as a dependent variable to analyse the relationship between the main shipping markets and to compare this relationship within the different type of vessels in the tanker industry.…”

Section: Tanker Shipping Marketmentioning

confidence: 99%

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A Critical Review of the Literature on Firm-Level Theories on Ship Investment

Girgin

Karlis

Nguyen

2018

IJFS

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Abstract:The maritime industry is one of those rare industries that are both highly international integrated to international trade and also highly capital intensive dependent on substantial investment amount. In the literature, ship investments have not been widely examined through the firm-level investment theories to explore the link between investment level and asset price valuation. The general trend in the literature of ship investments is to analyse the relationship among the shipping markets (newbuilding, second-hand, freight rate and scrap) and their impact on asset price valuation, the timing of investments and market entry and exit conditions. In this paper, we extensively reviewed the literature of firm-level investment theories and ship investments. We showed that the application of firm-level investment theories to the ship investments is confined to the basic investment valuation models, such as Net Present Value and Real Option Analysis. Ship investments need to be examined by firm-level investment theories to define firm/industry value maximization level within the approach of the solid investment theories.

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Data‐driven models for optimizing second‐hand ship trading strategies under contextual information

Wang,

Sun,

Wang

2024

Naval Research Logistics

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Second‐hand ship online trading platforms (SOTPs) are reshaping the traditional broker‐reliant second‐hand ship transactions. This study investigates the decision‐making process within the context of SOTP from a shipowner's perspective. We introduce a comprehensive framework tailored to guide shipowners in strategically navigating pivotal decisions, including the adoption of SOTP and the specification of optimal minimum starting prices while leveraging the value of online transaction data. Our approach is rooted in data‐driven decision‐making under uncertainty, employing quantile regression forests (QRF), and weighted sample average approximation (wSAA). The latter encompasses a predictive wSAA model, a local wSAA model, and a residual‐based wSAA model. Each of these models provides a unique perspective on weight determination within the wSAA paradigm. To validate our proposed approach, we draw upon extensive real‐world data sourced from a Chinese SOTP between January 2017 and May 2023. Within this context, our numerical experiments pursue three primary objectives: (i) identifying performance disparities among the models, (ii) assessing the value of contextual information, and (iii) evaluating the optimal strategy for shipowners. Our findings not only underscore the efficacy of our approaches but also provide invaluable insights into the adoption of SOTPs, establishing a robust foundation for informed decision‐making in the continually evolving SOTP landscape.

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Modelling the investment decision of the entrepreneur in the tanker sector: choosing between a second-hand vessel and a newly built one

Cited by 39 publications

References 13 publications

Ship Acquisition of Shipping Companies by Sale & Purchase Activities for Sustainable Growth: Exploratory Fuzzy-AHP Application

Ship Acquisition of Shipping Companies by Sale & Purchase Activities for Sustainable Growth: Exploratory Fuzzy-AHP Application

A Critical Review of the Literature on Firm-Level Theories on Ship Investment

Data‐driven models for optimizing second‐hand ship trading strategies under contextual information

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