Optimal capital structure of deep sea foreign freight transportation companies
Name
891587592-MIT.pdf
Description
Full printable version
Size
4.68 MB
Format
Adobe PDF
Checksum (MD5)
fe10d2a781a44c964aa5f4403cbec76f
Author(s)
Georgiadis, Vasilis
Advisor(s)
Xavier Giroud.
Date Issued
2014
Publisher
Massachusetts Institute of Technology
Abstract
This thesis aims to understand the optimal leverage range for shipping companies (maritime foreign freight transportation companies - SIC 4412), through data analysis. This study confirms that in a traditional industry like shipping, the Market value-leverage curve is very similar to the theoretical curve, as proposed by traditional capital structure theories. In comparison to other industries, the trend shows that there is allowance for more debt in shipping, since the optimal capital structure is reached in relatively higher values. Between shipping companies, the study shows that the most definitive factor in determining the optimal leverage is the company type (type of ships owned), and somewhat the year range the company operated. Contrary to other industries, company size does not seem to play a major role in shipping. Data analysis using pure plays (groups of very similar companies) reels trend lines with higher accuracy, indicating the optimal leverage range of certain types of shipping companies. The most consistent result is that for tanker shipping companies, where the optimal leverage range is 65-75%.
Description
Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, Engineering Systems Division, System Design and Management Program, 2014.
Cataloged from PDF version of thesis.
Includes bibliographical references (page 46).
Subjects
Engineering Systems Division.
System Design and Management Program.
MIT Department
System Design and Management Program.
Massachusetts Institute of Technology. Engineering Systems Division
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