Price and volume dynamics in the market of second hand dry bulk and tanker vessels
Ημερομηνία
2015-03-23, 2011-09-30
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Τίτλος τόμου
Εκδότης
Παραπομπή
Belli Ioulia, 2011, Price and volume dynamics in the market of second hand dry bulk and tanker vessels, Master's Dissertation, International Hellenic University
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Περίληψη
Περίληψη
The objective of this study is to present the price volatility as well as the sale and
purchase market dynamics, taking into account the effect of the recent global
economical crisis. The relationship between trading volume and price volatility is
examined for five-year old second hand vessels both in the dry bulk and in the tanker
market for the period June 1996 to July 2011. Consistent with the literature in
financial markets, a positive relationship is found to exist between price volatility and
trading volume in both markets. For handysize of the dry bulk market and aframax
and VLCC of the tanker market this relationship is found negative and consistent with
the findings of past studies (Alizadeh and Nomikos, 2003 and Syriopoulos and
Roumpis, 2006). Such a negative relationship would be expected in all vessel classes,
as the shipping industry is a market of thin trading. As being expected, the results
indicate that having incorporated the effects of the crisis, there is a differentiation in
the vessels’ price volatility behavior from what it was observed in previous studies,
conducted before the crisis begun. This study contributes to the understanding of the
shipping market microstructure and to existing empirical studies in the dynamics of
the market. Its results can be useful to investors in order to plan their investment
strategies and evaluate their risk in order to profit gain.