Validity of Capital Structure Theories in the Shipping Industry: An Application on U.S. Equity Markets

This paper analyses the financial factors that affect the capital structure decisions of 29 shipping companies in the U.S. equity markets. The study focuses on the impact of International Maritime Organization (IMO) regulations and new initiatives. The results show that leverage has a negative impact on profitability and size, in contrast to tangibility. It is also confirmed that the decisions of shipping companies regarding capital structure align with the pecking order theory of capital structure.