The Influence of Global Economic Crisis towards the Financial Performance of the Shipping Industry

Abstract:

In recent years, due to the influence of global economic cycle and container ship size became larger, the shipping industry has encountered with many competitions and crisis. Especially in 2008, as the global economic crisis have caused major change in the micro-environment; it has influenced on difficulties of business expansion of the shipping industry, and then further extended to the profitability. However, there were differences on the management policy of the various corporations in the shipping industry, which the purpose of this study was to explore that whether there were significant changes on the financial performance indexes of these corporations in the pre and post of the global economic crisis. This study further seeks on whether the economic crisis would create significant differences on the profitability and financial structure ratio of the shipping industry. The object of study was on the shipping corporations that were stock market listed in Taiwan, which there were total of nine corporations. To explain the financial performance of the shipping industry, this study would select multi financial ratio as initial indexes, and divide into five aspects of Profitability, Asset Turnover Ability, Short-Term Repayment Ability, Stability, and Cash Utilization Ability. Among the financial performance that was established in this study, the main analysis has shown that corporations were mostly concern with their profitability in their financial performance. Other than that, under the global economic crisis, the shipping industry has increased their short-term repayment ability in order to respond with the reduction problem of the global trade.

• Periodical: Applied Mechanics and Materials (Volume 145)
• Pages: 480-484
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.145.480
• Online since: December 2011
• Authors: Ching Tsung Hung, Fei Ching Chuang
• Keywords: Financial Performance, Global Economic Crisis, Shipping Industry

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