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Dividend Dynamics in the Shipping Industry: A Panel Data Analysis of Partial Adjustment Models
School of Business, Metropolitan College, Athens, Greece
Department of Maritime Studies, University of Piraeus, Piraeus, Greece
Department of Maritime Studies, University of Piraeus, Piraeus, Greece
- 1 School of Business, Metropolitan College, Athens, Greece
- 2 Department of Maritime Studies, University of Piraeus, Piraeus, Greece
- 3 Department of Maritime Studies, University of Piraeus, Piraeus, Greece
Theoretical Economics Letters·Volume 11 (2021)·Pages 995–1001·Published 3 September 2021·DOI10.4236/tel.2021.115063
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Abstract
This study explores the dividend dynamics of globally-listed firms in the idiosyncratic maritime sector. Employing an array of dynamic panel estimators in a sample of globally-listed shipping firms for the period 1988 to 2019 we provide empirical evidence that the degree of dividend smoothing (speed of adjustment) in the maritime sector is comparatively lower (higher). We also show that the speed of adjustment after deviations from the target is significantly higher in recession states. Our results document higher flexibility in the shipping industry’s dividend payouts, reflecting its distinct traits that amplify the adverse impacts of financing shocks.
KeywordsDividend SmoothingSpeed of AdjustmentMaritime IndustryRecessionShipping Companies
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