Authors: Aristeidis G. Samitas, Dimitris F. Kenourgios
Addresses: Department of Business Administration, Business School, University of the Aegean, 8 Michalon Str., 82100 Chios, Greece. ' Department of Economics, University of Athens, 5 Stadiou Street, Office 213, 10562 Athens, Greece
Abstract: This paper examines a new issue in the tramp shipping industry – mergers and acquisitions – which has drawn firms into a competition on size, market share and total tonnage. The purpose of this paper is to investigate the behaviour of tramp shipping firms| stock returns, when they announce mergers and acquisitions, and how this is portrayed on their stock values. The methodology used is event study analysis and bootstrap. Our sample is constituted by member firms of NASDAQ and NYSE. The empirical results indicate the positive impact that announcements of mergers and acquisitions cause in tramp firms| stock returns. The impact of mergers and acquisitions is highly important and plays a key role for firms to follow new challenges in the shipping industry and create higher financial value.
Keywords: bootstrap methodology; consolidation; corporate restructuring; event study analysis; mergers; acquisitions; NASDAQ; NYSE; tramp shipping firms; stock returns.
International Journal of Financial Services Management, 2007 Vol.2 No.4, pp.327 - 343
Published online: 15 Dec 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article