TY - JOUR
T1 - Beta comparisons across industries—a Water transportation industry perspective
AU - Kavussanos, Manolis G.
AU - Marcoulis, Stelios N.
PY - 1998
Y1 - 1998
N2 - This paper undertakes a comparative analysis of the stock market perception of risk in US listed water transportation companies and seven other main sectors, air transportation; rail transportation; trucks; electricity; gas; petroleum refining; and real estate over the period July 1984–June 1995. This is done by employing the Capital Asset Pricing Model (CAPM) to model the stock returns of each industry and hence compare their betas (systematic risk). Multiequation Regression Models are used for estimation. The findings suggest that the water transportation industry exhibits significantly lower market risk than the average stock and the rail transportation industry, significantly higher systematic risk than the real estate industry, while its systematic risk is insignificantly different from the rest of the industries. These results are useful to investors basing their decisions on relative market exposures to risk in different industries.
AB - This paper undertakes a comparative analysis of the stock market perception of risk in US listed water transportation companies and seven other main sectors, air transportation; rail transportation; trucks; electricity; gas; petroleum refining; and real estate over the period July 1984–June 1995. This is done by employing the Capital Asset Pricing Model (CAPM) to model the stock returns of each industry and hence compare their betas (systematic risk). Multiequation Regression Models are used for estimation. The findings suggest that the water transportation industry exhibits significantly lower market risk than the average stock and the rail transportation industry, significantly higher systematic risk than the real estate industry, while its systematic risk is insignificantly different from the rest of the industries. These results are useful to investors basing their decisions on relative market exposures to risk in different industries.
UR - http://www.scopus.com/inward/record.url?scp=85015564226&partnerID=8YFLogxK
U2 - 10.1080/03088839800000027
DO - 10.1080/03088839800000027
M3 - Article
AN - SCOPUS:85015564226
SN - 0308-8839
VL - 25
SP - 175
EP - 184
JO - Maritime Policy and Management
JF - Maritime Policy and Management
IS - 2
ER -