Shipping Listed Companies Based On Shareholder Value Management, Asset Configuration

According to the shareholder value maximization management goal, the best investment decision-making is to maintain the company obtaining stable income growth, to reduce the fluctuation to guarantee the stable increase of shareholder value in long term. The related research indicates that to reduce the earnings fluctuation will increase the firm value, and improve the evaluation of company stock.The asset allocation is the process that investors allocate the property and determine each category proportion. The principle of asset allocation is one should carry on combination investment , according to the correlation difference between different assets, so as to smooth income and reduce risk.Shipping is a typical periodic industry, and shipping freight fluctuates along with the global economy and trade periodic fluctuation largely. Shipping company's earnings also fluctuates periodically, thus the share price of shipping company and the shareholder value fluctuate periodically. So under the shipping industry periodic fluctuation environment, how to allocate the funds to appropriate assets categories, use in the appropriate shipping services, simultaneously, adjust each asset category and its weight, carry on the most optimized asset allocation, to reduce the earnings fluctuation to increase the shareholder long period value is very important for shipping company to carry through the shareholder value management.The author has first analyzed the earnings fluctuation difference between each shipping service, including the shipping transportation, the harbor and wharf service, the container lease, during the periodic fluctuation , among them, the shipping transportation is impressible mostly, the harbor and wharf service is much less impressible. Then, the author classify the listed shipping companies into two kinds: one deals with the single shipping transportation and another has carried on the shipping asset allocation. On the base of this classification, the author compared the earnings fluctuation, cash flow fluctuation and evaluation difference between two kind of companies.The comparison result indicates that, the earnings and CF of companies which carries on the asset allocation fluctuate more slightly then those of companies with single shipping service, and the stock price more higher. So the conclusion of this article is that during the industry periodicity fluctuation period, the listed shipping companies need to combine shipping asset with other industry assets which are not impressible to the industry fluctuation, based on the consideration of improving the stock evaluation, so as to smooth CF and decrease the earnings fluctuation of the companies.