| dc.description.abstract | 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. | en_US |
