Choice of financing and governance structures in transport industry : theory and practice

X. H., Stephen GONG, Michael FIRTH, Kevin CULLINANE

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

Abstract

The purpose of this work is to develop a descriptive theory of corporate finance and corporate governance for the world transport industry. More specifically, we examine the economic, institutional, and industrial factors behind a transportation company’s choice of different financing mechanisms and governance structures (collectively called “financing methods”). This combined treatment of corporate finance and corporate governance is in line with Williamson (1988), who argues that “the supply of a good or service and its governance need to be examined simultaneously”. This is a step further than the traditional approach in corporate finance, which tends to limit its investigation of a firm’s choice of financial structure (i.e., debt vs. equity) in aggregate, with no follow-on inquiry into the resultant governance structure at an individual firm or industry level. The value of the level of aggregation and abstraction in neo-classical financial theory, along with the simplifying assumptions that are usually made, lies in their potential for clarifying difficult analytic issues, but it also rules out important practical considerations which influence financial system form and functions (Neave, 1991).
Original languageEnglish
Title of host publicationDynamic shipping and port development in the globalized economy
PublisherPalgrave Macmillan
Pages150-177
Number of pages28
Volume1
DOIs
Publication statusPublished - 1 Jan 2016

Fingerprint

Financing
Corporate finance
Transport industry
Governance structure
Corporate governance
Factors
Institutional economics
Financial system
Financial structure
Debt
Industrial economics
Governance
Equity
Industry

Bibliographical note

This chapter is a reprint of Gong, S.X.H., Firth, M., and Cullinane, K.P.B. (2005), Choice of Financing and Governance Structures in Transport Industry: Theory and Practice. In Lee, T.W. and Cullinane, K.P.B. (Eds.), World Shipping and Port Development, New York: Palgrave MacMillan, 50–75.
ISBN of the source publication: 9781137514295

Cite this

GONG, X. H. . S., FIRTH, M., & CULLINANE, K. (2016). Choice of financing and governance structures in transport industry : theory and practice. In Dynamic shipping and port development in the globalized economy (Vol. 1, pp. 150-177). Palgrave Macmillan. https://doi.org/10.1057/9781137514295_7
GONG, X. H., Stephen ; FIRTH, Michael ; CULLINANE, Kevin. / Choice of financing and governance structures in transport industry : theory and practice. Dynamic shipping and port development in the globalized economy. Vol. 1 Palgrave Macmillan, 2016. pp. 150-177
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GONG, XHS, FIRTH, M & CULLINANE, K 2016, Choice of financing and governance structures in transport industry : theory and practice. in Dynamic shipping and port development in the globalized economy. vol. 1, Palgrave Macmillan, pp. 150-177. https://doi.org/10.1057/9781137514295_7

Choice of financing and governance structures in transport industry : theory and practice. / GONG, X. H., Stephen; FIRTH, Michael; CULLINANE, Kevin.

Dynamic shipping and port development in the globalized economy. Vol. 1 Palgrave Macmillan, 2016. p. 150-177.

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

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GONG XHS, FIRTH M, CULLINANE K. Choice of financing and governance structures in transport industry : theory and practice. In Dynamic shipping and port development in the globalized economy. Vol. 1. Palgrave Macmillan. 2016. p. 150-177 https://doi.org/10.1057/9781137514295_7