Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5110381 | Transportation Research Part E: Logistics and Transportation Review | 2017 | 16 Pages |
Abstract
We examine whether investors herd in their decision to order or scrap vessels in the drybulk market. We decompose herding into unintentional and intentional, and test for herd behavior under asymmetric effects with respect to freight market states, cycle phases, risk-return and valuation profiles, and ownership of the vessel. We detect unintentional herd behavior during down freight markets and contractions. Furthermore, we find evidence of spill-over unintentional herding effects from the newbuilding to the scrap market. Finally, asymmetric herd effects are evident between traditional and liberal philosophy towards the ownership of the vessel, and during extreme risk-return and valuation periods.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Nikos C. Papapostolou, Panos K. Pouliasis, Ioannis Kyriakou,