New Study Findings from Korea Maritime Institute Illuminate Research in Risk Management (Empirics of Korean Shipping Companies’ Default Predictions): Insurance – Risk Management

2021 OCT 08 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on insurance are discussed in a new report. According to news reporting from Busan, South Korea, by NewsRx journalists, research stated, “In this paper, we use a logit model to predict the probability of default for Korean shipping companies.”

Funders for this research include Korea Maritime Institute.

Our news reporters obtained a quote from the research from Korea Maritime Institute: “We explore numerous financial ratios to find predictors of a shipping firm’s failure and construct four default prediction models. The results suggest that a model with industry specific indicators outperforms other models in predictive ability. This finding indicates that utilizing information about unique financial characteristics of the shipping industry may enhance the performance of default prediction models.”

According to the news editors, the research concluded: “Given the importance of the shipping industry in the Korean economy, this study can benefit both policymakers and market participants.”

For more information on this research see: Empirics of Korean Shipping Companies’ Default Predictions. Risks, 2021,9(159):159. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks9090159.

Our news journalists report that more information may be obtained by contacting Sunghwa Park, Shipping Finance Research Division, Korea Maritime Institute, Busan 49111, South Korea. Additional authors for this research include Hyunsok Kim, Janghan Kwon, Taeil Kim.

(Our reports deliver fact-based news of research and discoveries from around the world.)