Do Green Forerunners Perform Better? An Empirical Investigation of the Global Shipping Stock Market
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- Master of Science 
This thesis studies the relationship between the financial and environmental performance of global tanker and dry bulk shipping stocks between 2016 and 2022. We construct two different green stock portfolios consisting of i) shipping companies that invest in scrubbers, and ii) shipping companies that publish sustainability reports. We compare the financial performance of these green portfolios with the global stock market, the shipping stock market, and their nongreen peers. The results are consistent regardless of the green portfolio and indicate that green shipping stocks do not outperform the global market or the shipping market. Yet, we find evidence that green shipping stocks outperform their nongreen peers. Relative to their non-green peers, the green portfolios generate abnormal monthly returns ranging from 0.359 to 0.631. These results are driven by negative and significant abnormal returns generated by the non-green portfolios, indicating that the market punishes shipping stocks that ignore environmental efforts. The evidence is consistent with increased investor scrutiny due to expanding regulatory structures in the maritime industry. We acknowledge that the small and constructed sample size of shipping stocks may cause biased results. However, we conclude that a comprehensive data selection process in consultation with Pareto Securities and Yara Marine Technologies answers such issues.
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2022