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Introduction: Financial Implications of Regulations in the Energy Industry Read chapter Read first chapter

2020 | OriginalPaper | Chapter

The Determinants of Systematic Risk of Renewable Energy Firms

Authors : Lars J. Hesselink, Lammertjan Dam, Wim Westerman

Published in: Regulations in the Energy Industry

Publisher: Springer International Publishing

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Abstract

Conventional asset pricing theory predicts that expected stock returns are driven by systematic risk. In this context, we investigate the determinants of systematic risk of renewable energy firms. To do so, we estimate a dynamic beta model using a cross-country panel data set of 578 renewable energy firms from 52 countries for the period 2005–2016. We employ both global and country-specific factors to explain both variation over time and variation between firms in their systematic risk. The results show that systematic risk of renewable energy firms is negatively influenced by oil returns and that country-level net-imports, environmental policy stringency, and environmental policy stability explain differences in risk at the country level.

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previous chapter Corporate Cash Holdings in the Oil and Gas Industry: The Role of Energy Directives
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Metadata
Title
The Determinants of Systematic Risk of Renewable Energy Firms
Authors
Lars J. Hesselink
Lammertjan Dam
Wim Westerman
Copyright Year
2020
Publisher
Springer International Publishing
Book
Regulations in the Energy Industry

Print ISBN: 978-3-030-32295-3

Electronic ISBN: 978-3-030-32296-0

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-32296-0_12