How Corporate Governance and Globalization Affect the Administrative Structure of the Greek Shipping Industry

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ABSTRACT

According to recent studies administration systems in shipping are being developed continuously regarding two aspects. Firstly, using modern methods of design programs and measurement of performance and results and secondly with the adoption of main factors of corporate governance as defined by the Organization for Economic Co-operation and Development. As per prescriptive framework of the Organization, the fundamentals of corporate governance constitute one basic tool for the improvement of the legal, institutional, prescriptive framework of corporate governance and are focused not only in financial matters but in matters of organization and administration of listed companies in international stock exchanges including shipping companies.

Globalization, has also affected the shipping industry to a great extent, in addition to the new developments in international trade which have changed the structure of the shipping industry especially during recession due to the fact that world production is diminishing. Maritime indices are closely related to macroeconomic developments and other financial indices as well, giving a grasp for a detailed analysis in this study. These developments constitute part of this article by using a structured questionnaire in a market analysis which has been contacted for the Greek shipping industry for the period 2011-2015.

INTRODUCTION

Recent studies (Lyridis et al., 2005, McLellan 2006, Brown 2006, Spyriopoulos, Theotokas, 2007) have shown that administration systems in shipping are being developed continuously regarding two aspects following developments in the field of corporate management. Firstly, using modern methods of design programs and measurement of performance and results (Zampeta, 2010) and secondly with the adoption of main factors of corporate governance as defined by the Organization for Economic Co-operation and Development (OECD 2004, Zampeta, 2011). The fundamentals of corporate governance as developed in first stage on 1999, later on 2004 and finally on 2006 have been approved from countries of OECD as well as from some other countries. The fundamentals constitute one basic tool for the improvement of the legal, institutional, prescriptive framework of corporate governance and are focused not only in financial matters but in matters of organization and administration of listed companies in international stock exchanges including shipping companies worldwide.

Globalization on the other hand has affected the shipping industry to a great extent, in addition to the new developments in international trade which have changed the structure of the shipping industry especially during recession due to the fact that world production is diminishing. Maritime indices are closely related to macroeconomic developments and other financial indices as well, giving a grasp for a detailed analysis in this study.

These developments constitute part of this article. Factors of corporate governance have been included in the questions of a structured questionnaire for executive officers of shipping companies for the period 201 1-2015 in order to verify the importance that the executive officers assign in these developments and the likely future adjustment of the Greek shipping companies in the herein-below characteristics. Furthermore it is worthwhile recording the views and trends emerging in the area of Greek shipping from senior executives and in terms of the impact of globalization and the recent financial crisis in the further development of Greek shipping.

LITERATURE REVIEW

The importance given to the subject of corporate governance reflected by the extensive and recent research on business issues such as organization, leadership, ownership structure, strategy development and financial management than ever with the principles of corporate governance. The most important findings are listed below:

Karpoff, Malatesta and Walkling, 1996, have found that there is lack of significant relationship between the mechanisms of corporate governance and profitability. …