Financial Risk Analysis in Renewable Energy Companies

Öz

Global energy demand increases every year. It is needed new energy sources. Renewable energy companies play an essential role in producing or storing alternative energy sources. As they have high assets and liabilities, there can be financial risk. This study examined the financial risks of alternative energy companies for Alternative Energy Foreign Equity Fund. It comprises publicly traded renewable energy companies operating in different countries. The study employed the least-squares method for a panel data analysis of financial ratios calculated from companies' financial statements between 2017 and 2021. The data were obtained from the Wall Street Journal Market database, Yahoo Finance, and the companies' financial statements. Financial expenses coverage ratio and financing ratios were included in the model to examine the financial structure. Financial risk ratio, financial leverage ratio, and total assets were included in the model to evaluate the financial risk status of the companies. The results showed that financial risk ratio, capital structure, financing costs, and debt repayment ability affected alternative energy companies' performance.

Anahtar Kelimeler

• Alternative Energy
• Financial Risk Analysis
• Market Value

Kaynakça

1. Ak Portfoy. (2022, 03 01). Ak Portföy Alternatif Enerji Yabancı Hisse Senedi Fonu. https://akportfoy.com.tr/tr/fund/AOY adresinden alındı
2. Alessio, F. J. (1981). Energy Analysis and the Energy Theory of Value. The Energy Journal, 2(1), 61-74.
3. Anderloni, L., & Tanda, A. (2017). Green energy companies: Stock performance and IPO returns. Research in International Business and Finance(39), 546-552.
4. Bak, C. (2017). Can Canada Step into the Breach?: Addressing Climate-related Financial Risk and Growing Green Finance. Centre for International Governance Innovation, Policy Brief No. 110, 1-19.
5. BNEF. (2022). Energy Transition Investment Trends 2022. New York: Bloomberg New Energy Finance L.P. chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://assets.bbhub.io/professional/sites/24/Energy-Transition-Investment-Trends-Exec-Summary-2022.pdf adresinden alındı
6. Bolton, P., & Kacperczyk, M. (2020). Do Investors Care about Carbon Risk? ECGI Working Paper Series in Finance, Working Paper N° 711/2020, 1-85.
7. Dayi, F. (2019). Futbol Kulüplerinde Finansal Risk Analizi. Maliye ve Finans Yazıları(111), 357-385.
8. European Comission. (2019). Communication From the Commision to the European Parliament, The European Council, The Council, The European Economic and Social Committee and The Committee of The Regions. Brussels: European Comission.

9. Gómez, R. S., Sánchez, A. R., García, C. G., & Pérez, J. G. (2020). The VIF and MSE in Raise Regression. Mathematics, 8(605), 1-28.
10. Hankins, K. W. (2011). How Do Financial Firms Manage Risk? Unraveling the Interaction of Financial and Operational Hedging. Management Science, 57(12), 2197-2212.
11. Henriques, I., & Sadorsky, P. (2008). Oil Prices and The Stock Prices of Alternative Energy Companies. Energy Economics(30), 998-1010.
12. IEA. (2019). Multiple Benefits of Energy Efficiency. https://www.iea.org/reports/multiple-benefits-of-energy-efficiency adresinden alındı
13. IEA. (2021). Renewables Information: Overview. https://www.iea.org/reports/renewables-information-overview adresinden alındı
14. Iovino, F., & Migliaccio, G. (2019). Energy companies and sizes: An opportunity? Some empirical evidences. Energy Policy(128), 431-439.
15. Jaworski, J., & Czerwonka, L. (2021). Determinants of Enterprises’ Capital Structure in Energy Industry: Evidence from European Union. energies, 14(7), 1-21.
16. Lai, X., Yue, S., & Chen, H. (2022). Can green credit increase firm value? Evidence from Chinese listed new energy companies. Environmental Science and Pollution Research, 29, 18702–18720.
17. Porter, M. E., & Linde, C. v. (1995). Toward a New Conception of the Environment-Competitiveness Relationship. Journal of Economic Perspectives, 9(4), 97-118.
18. Rutkowska-Tomaszewska, E., Łakomiak, A., & Stanisławska, M. (2022). The Economic Effect of the Pandemic in the Energy Sector on the Example of Listed Energy Companies. energies, 15(58), 1-28.
19. Rutkowska-Ziarko, A., & Markowski, L. (2022). Accounting and Market Risk Measures of Polish Energy Companies. energies, 1-21.
20. Sadorsky, P. (2012a). Correlations and Volatility Spillovers Between Oil Prices and The Stock Prices of Clean Energy and Technology Companies. Energy Economics(34), 248-255.
21. Sadorsky, P. (2012b). Modeling Renewable Energy Company Risk. Energy Policy(40), 39-48.
22. Tatoğlu, F. Y. (2018). Panel Veri Ekonometrisi. İstanbul: Beta Basım Yayın Dağıtım.
23. Vu, D., Muttaqi, K., & Agalgaonkar, A. (2015). A variance inflation factor and backward elimination-based robust regression model for forecasting monthly electricity demand using climatic variables. Energy(140), 385-294.
24. Walley, N., & Whitehead, B. (1994). It’s Not Easy Being Green. Harward Business Review.
25. Wen, X., Guo, Y., Wei, Y., & Huang, D. (2014). How do The Stock Prices of New Energy and Fossil Fuel Companies Correlate? Evidence from China. Energy Economics(41), 63-75.
26. WSJ. (2022, 03 01). The Wall Street Journal Market database. https://www.wsj.com/market-data adresinden alındı
27. Yahoo Finance. (2022, 03 01). Yahoo Finance. https://finance.yahoo.com/ adresinden alındı
28. Zimon, G. (2020). Financial Liquidity Management Strategies in Polish Energy Company. International Journal of Energy Economics and Policy, 10(3), 365-368.