Journal of Navigation and Port Research (한국항해항만학회지)

Korean Institute of Navigation and Port Research (한국항해항만학회)
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A Study on the Relationship between National Controlling Fleets and the Managerial Performance of Ship Management Companies in Korea

  • Sang Bae Lee (Korea Ship Managers' Association) ;
  • Chi Yeol Kim (Division of Shipping Management, Korea Maritime & Ocean University)
  • Received : 2024.04.08
  • Accepted : 2024.04.16
  • Published : 2024.04.30
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Abstract

This study investigates the relationship between national controlling fleets and the managerial performance of ship management companies in Korea. As industries clearly show interrelations between upstream and downstream entities , it is likely that the managerial performance of ship management companies in Korea is affected by the size of national fleet. Therefore, the present study analyzes the impact of Korean fleet size on the growth and the profitability of ship management firms. To this end, the performances of 10 major ship management companies in the period from 2012-2022 are examined through panel data regressions. The results indicate that the size of the national fleet has a positive impact on growth in both the assets and the sales of ship management companies. Specifically, the size of the Korean-flagged fleet is the most crucial factor, while that of the foreign-flagged fleet has no significant effect. In stark contrast to the findings regarding growth, the size of national fleet is found to have no significant impact on the profitability of ship management companies. This study's findings are expected to provide valuable implications informing both the managerial decision-making of ship management companies as well as policy-making for shipping and its related industries.

Keywords

Acknowledgement

This research was supported by the 4th Educational Training Program for the Shipping, Port and Logistics from the Ministry of Oceans and Fisheries.

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