| Article ID: | iaor2005255 |
| Country: | United Kingdom |
| Volume: | 39 |
| Issue: | 6 |
| Start Page Number: | 459 |
| End Page Number: | 471 |
| Publication Date: | Nov 2003 |
| Journal: | Transportation Research. Part E, Logistics and Transportation Review |
| Authors: | Grammenos Costas Th., Arkoulis Angelos G. |
| Keywords: | statistics: regression |
This paper investigates determinants of pricing of new high yield bond offerings of shipping companies. New high yield bond offerings issued by shipping companies in the US market, during the period 1993–1998, are used in the investigation. The empirical results suggest that credit rating is the major determinant of the price spread of the bond offerings. Financial leverage and shipping market conditions also account for a significant part of the price variability.