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Impact of the global green factor on the capitalization of oil companies in Russia

Author

Listed:
  • Irina Filimonova

    (Trofimuk Institute of Petroleum Geology and Geophysics of SB RAS, Novosibirsk State University, Russia)

  • Anna Komarova

    (Institute of Economics and Industrial Engineering of SB RAS, University of Economics in Bratislava, Slovakia)

  • Mikhail Mishenin

    (Trofimuk Institute of Petroleum Geology and Geophysics of SB RAS, Novosibirsk State University, Russia)

Abstract

Research background: This paper studies the impact of a new so-called green factor on the capitalization of petroleum companies, which is becoming highly relevant in view of the signing of the Paris agreements in 2015 and the support for clean energy. Although society, international organizations, and government authorities encourage companies to reduce their environmental impact, one of the main reasons for responsible behavior is still economic efficiency. The oil industry, on the one hand, faces one of the most volatile markets and, on the other hand, has one of the largest environmental impacts of any industry. That requires a detailed study of interconnections between market capitalization and the green factor. Purpose of the article: A comprehensive study of factors affecting the level of capitalization of oil and gas companies in Russia and identification of the most significant among them with a special focus on the green factor. Methods: Econometric analysis of panel data for Russian petroleum companies. The database includes indicators for six major Russian oil companies from 2011 to 2018. The following groups of factors are analyzed to explain the change in the companies’ capitalization: macroeconomic (GDP and inflation in Russia), microeconomic (companies’ revenue, net profit, tax payment, return on assets, return on equity, ratio of borrowed capital to equity), industrial (oil export, refining, production and proven reserves of the companies), and the green factor. Findings & Value added: The selection of factors showed that the size of capitalization has been influenced most significantly by the following: the volume of the company's proven reserves, net profit, tax burden, and the green factor based on the policy of minimizing environmental damage. This result shows that investors consider companies with high environmental performance to be more valuable than companies with similar financial results but lower environmental ratings.

Suggested Citation

  • Irina Filimonova & Anna Komarova & Mikhail Mishenin, 2020. "Impact of the global green factor on the capitalization of oil companies in Russia," Oeconomia Copernicana, Institute of Economic Research, vol. 11(2), pages 309-324, June.
    • Handle: RePEc:pes:ieroec:v:11:y:2020:i:2:p:309-324
    DOI: 10.24136/oc.2020.013
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    Cited by:

    1. Ivan Trifonov & Dmitry Trukhan & Yury Koshlich & Valeriy Prasolov & Beata Ślusarczyk, 2021. "Influence of the Share of Renewable Energy Sources on the Level of Energy Security in EECCA Countries," Energies, MDPI, vol. 14(4), pages 1-15, February.
    2. Clodniţchi Roxana & Tudorache Octavia, 2022. "Resource efficiency and decarbonisation of economies in the European Union," Management & Marketing, Sciendo, vol. 17(2), pages 139-155, June.
    3. Aleksandra Matuszewska-Janica & Dorota Żebrowska-Suchodolska & Urszula Ala-Karvia & Marta Hozer-Koćmiel, 2021. "Changes in Electricity Production from Renewable Energy Sources in the European Union Countries in 2005–2019," Energies, MDPI, vol. 14(19), pages 1-27, October.
    4. Mihaela Simionescu & Yuriy Bilan & Piotr Zawadzki & Adam Wojciechowski & Marcin Rabe, 2021. "GHG Emissions Mitigation in the European Union Based on Labor Market Changes," Energies, MDPI, vol. 14(2), pages 1-13, January.
    5. Mihaela Simionescu & Adam Wojciechowski & Arkadiusz Tomczyk & Marcin Rabe, 2021. "Revised Environmental Kuznets Curve for V4 Countries and Baltic States," Energies, MDPI, vol. 14(11), pages 1-15, June.
    6. Marta Ewa Kuc-Czarnecka & Magdalena Olczyk & Marek Zinecker, 2021. "Improvements and Spatial Dependencies in Energy Transition Measures," Energies, MDPI, vol. 14(13), pages 1-22, June.
    7. Ade Banani & Bambang Sunarko, 2022. "Nexus between Green Finance, Creativity, Energy Accounting and Financial Performance: Banks Sustainability Analysis from Developing Country," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 447-455, November.
    8. Michał Bernard Pietrzak & Bartłomiej Igliński & Wojciech Kujawski & Paweł Iwański, 2021. "Energy Transition in Poland—Assessment of the Renewable Energy Sector," Energies, MDPI, vol. 14(8), pages 1-23, April.

    More about this item

    Keywords

    capitalization; ecology; oil company; green factor;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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