Exploring the Relationship Between Management, Corporate Governance, and Agency Theory: An Empirical Examination of Their Impact on Net Asset Value Premiums or Discounts in Publicly Listed Shipping Companies

Abstract

This paper investigates the relationship between corporate governance and the premiums or discounts between the market capitalization and the net asset value (NAV) of publicly listed maritime shipping companies. We employ a quantitative study with a unique panel data, to explore and empirically investigate the reasons why a company’s corporate governance may affect NAV discounts or premiums. By understanding how management and corporate governance practices can influence the valuation of a company, stakeholders can make more informed decisions about their investments and the companies they choose to do business with. Factors such as Related Party Transactions, Return on Equity, Board Independence, and Board Size have a negative effect on the P/NAV ratio, indicating that these governance practices tend to result in NAV discounts. Conversely, CEO duality and market capitalization exhibit a positive effect on the P/NAV ratio, suggesting that these factors contribute to NAV premiums.