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A critical review of the literature on firm-level theories on ship investment


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Celik Girgin, S ORCID: 0000-0002-3475-6864, Karlis, T and Nguyen, H-O ORCID: 0000-0002-9167-0143 2018 , 'A critical review of the literature on firm-level theories on ship investment' , International Journal of Financial Studies, vol. 6, no. 1 , pp. 11-30 , doi: 10.3390/ijfs6010011.

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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

Item Type: Article
Authors/Creators:Celik Girgin, S and Karlis, T and Nguyen, H-O
Keywords: investment theories, microeconomics, ship investments, maritime industry
Journal or Publication Title: International Journal of Financial Studies
Publisher: MDPI AG
ISSN: 2227-7072
DOI / ID Number: 10.3390/ijfs6010011
Copyright Information:

© 2018 The Authors. Licensed under Creative Commons Attribution 4.0 International (CC BY 4.0)

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