Authors: Theodore Syriopoulos, Michael Tsatsaronis, Hara XYNOU, Emmanouil VAGIANOS

Title: Capital Structure Determinants According to Risk Periods in Shipping Companies

Abstract

The objective of this paper is to investigate the capital structure determinants for globally listed shipping companies. Debt capital has traditionally been the most important source of external financing in the shipping industry. We find asset structure, firm size, growth opportunities, profitability and risk related to debt to be the most influential on the optimal capital structure choice. Our analysis is based on trade-off and pecking order theories, some researchers, though, also use, agency and market timing theories. The model is estimated using a dynamic panel data approach for the period 2006 - 2016 covering periods of high and low risk. Our hypotheses are based on literature and empirical knowledge. This research depicts the most influential ratios and indicators and company’s speed of adjustment demonstrating the importance of capital structure decisions for financial sources.