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Financing Investment under Uncertainty: The Case of Payout Reductions in Globally Listed Maritime Firms
School of Business, Metropolitan College, Athens, Greece
Department of Economics, University of Piraeus, Piraeus, 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 Economics, University of Piraeus, Piraeus, Greece
- 3 Department of Maritime Studies, University of Piraeus, Piraeus, Greece
- 4 Department of Maritime Studies, University of Piraeus, Piraeus, Greece
Theoretical Economics Letters·Volume 11 (2021)·Pages 1157–1164·Published 11 November 2021·DOI10.4236/tel.2021.116073
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Abstract
This study explores whether payout reductions represent an alternative source of investment funds. We focus on the distinct, financially constrained maritime sector and draw a sample of 1863 firm-year observations from 143 globally-listed maritime firms during 1987-2020. Investigating the payout reduction-investment nexus , we document a positive relationship that surfaces in recession periods. Our findings indicate that payout reductions represent a source of funds for maritime firms in times of negative external financing shocks.
KeywordsDividend PayoutsInvestmentUncertaintyMaritime IndustryRecessionShipping Firms
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