Lead-lag relationship between new-building and second-hand ship prices

Ying KOU, Liming LIU, Meifeng LUO

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

5 Citations (Scopus)

Abstract

We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.
Original languageEnglish
Pages (from-to)303-327
Number of pages25
JournalMaritime Policy and Management: The flagship journal of international shipping and port research
Volume41
Issue number4
Early online date2 Aug 2013
DOIs
Publication statusPublished - 2014

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title = "Lead-lag relationship between new-building and second-hand ship prices",
abstract = "We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.",
author = "Ying KOU and Liming LIU and Meifeng LUO",
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language = "English",
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Lead-lag relationship between new-building and second-hand ship prices. / KOU, Ying; LIU, Liming; LUO, Meifeng.

In: Maritime Policy and Management: The flagship journal of international shipping and port research, Vol. 41, No. 4, 2014, p. 303-327.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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T1 - Lead-lag relationship between new-building and second-hand ship prices

AU - KOU, Ying

AU - LIU, Liming

AU - LUO, Meifeng

PY - 2014

Y1 - 2014

N2 - We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.

AB - We examine lead-lag relationships between new-building and second-hand ship prices. Our analysis shows the existence of a one-directional lead-lag relationship between two ship prices. The direction of lead-lag relationship is not affected by the time evolution and age of second-hand ships, but is affected by the division of shipping sector. Particularly, directions of ship price movements in dry bulk and tanker shipping sectors are opposite. We argue that the opposite directional lead-lag relationships are caused by the difference in competition levels and the difference in the purposes of trading in the two shipping sectors.

UR - http://commons.ln.edu.hk/sw_master/2314

U2 - 10.1080/03088839.2013.821209

DO - 10.1080/03088839.2013.821209

M3 - Journal Article (refereed)

VL - 41

SP - 303

EP - 327

JO - Maritime Policy and Management

JF - Maritime Policy and Management

SN - 0308-8839

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