Determinants of the probability of default: the case of the internationally listed shipping corporations |
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| Authors: | Agata Lozinskaia Anna Merika Henry Penikas |
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| Institution: | 1. Department of Economics and Finance, the Group for Applied Markets and Enterprises Studies, National Research University Higher School of Economics, Perm, Russia;2. Department of Economics, Deree College, Athens, Greece;3. Department of Applied Economics, International Laboratory of Decision Choice and Analysis, National Research University Higher School of Economics, Moscow, Russia |
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| Abstract: | In this study, we use a sample of 192 listed shipping companies and employ a logit model in order to investigate the determinants of the probability of default. We enhance our analysis by isolating not only the cases of company liquidations but also those cases where companies had to change their legal status due to warning liquidity signals. Our key findings are in line with prior research and moreover we depict a changing trend in the marginal effects of relevant variables, on the probability of default. We further show, through an empirical application, how the obtained results can be used in a managerial decision-making process and in a bank credit underwriting process in order to assess the creditworthiness of a shipping company. |
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| Keywords: | Shipping industry probability of default semi-default logit model ordered logit model |
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