Shipping Firms’ Efficiency Evaluation through Stochastic Frontier Analysis
- 1 Shipping, Trade & Transport Department, Business School, University of Aegean, Chios, Greece
Abstract
The concept of this study is to note whether financial risk assessment tools impact a ship ping firm’s performance, competitiveness and efficiency. Stochastic Frontier Analysis (SFA) is used in the evaluation of such issues. The shipping industry has been classified in three segments, namely dr y bulk, tankers (including LPG and LNG) and containers. The influence of the risk asses sment indicators on market and operational efficiency is subsequently determined by using a panel regression. This assists to determine whether different asset allocation and risk management techniques improve the performance of shipping firms. Our sample consists of 82 international ship-owning firms drawn from Bloomberg database for the period of 2001-2014. Through estimating effi ciency, our model shows that containerized cargo firms have better performance in ma rket and operating efficiency as well.
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