An investigation on behavioral biases in ship investments of small-sized shipping companies

Abstract

Purpose: This study aims to explain the facts about behavioral biases that cannot be explained by rational patterns in ship investments of small-size shipping companies. Design/methodology/approach: A qualitative approach was adopted in this study. The systematic approach of Wolcott (1994) and the action flows proposed by Miles and Huberman (1994) were taken into consideration. Findings: Factors affecting ship investments are classified as ship finance, market timing, ship specifications and profile and business models of ship investors. In addition, behavioral biases that stand out under each theme are explained in the light of behavioral finance literature. Originality/value: The originality of this study rests on the lack of studies on behavioral aspects of ship investments.