A4 Conference proceedings

Performance determinants of global renewable energy companies


Open Access publication

LUT Authors / Editors

Publication Details
Authors: Ahmed Sheraz, Saleem Kashif, Lopez Guillermo-Lopez
Publication year: 2014
Language: English
Title of parent publication: Proceedings of the twenty-first annual conference of the multinational finance society
JUFO-Level of this publication:
Open Access: Open Access publication

Abstract
The purpose of this paper is to identify the Performance Determinants (PD) of global Renewable Energy (RE) companies. The test has been carried out on two sets of determinants: market level and firm level. The results showed that out of the market level determinants Consumer Price Index, Interest Rates and Oil prices are significant. Whereas out of the firm level determinants, Debt to Assets ratio, Net Investments, Cash flows from operations, Sales and Earnings before Interests and Taxes (EBIT) are significant determinants of performance. Overall the firm level determinants better explain the variations in book performance of RE companies than market level determinants. Although the market of RE firms is becoming more regulated and country's macroeconomic factors play significant role in designing the newly developed industrial sector but the major part of the financial and operational risk is still explained by idiosyncratic factors. Investors in RE sector can maximize their returns using strategies based on these findings.

Last updated on 2017-22-03 at 14:13