IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v128y2023ics0140988323006904.html
   My bibliography  Save this article

Emerging Industry Development and Information Transmission in Financial Markets: Evidence from China's Renewable Energy

Author

Listed:
  • Lin, Boqiang
  • Li, Minyang

Abstract

Financial constraint theory and asset pricing theory elucidate the distinct correlation between equity capital cost and strategic investment from different perspectives, encompassing both the intricate uncertainty of the business environment and the efficacy of transmitting financial market information. The burgeoning development of China's renewable energy industry amidst this complex backdrop provides an exceptional empirical context for investigation. Therefore, we select Chinese renewable energy enterprises as samples, considering both internal perceived and external cognized business environment uncertainty, to examine the role played by these factors in influencing equity cost on strategic investment. The findings reveal that changes in such uncertainties result in a ‘saddle’ characteristic. This insight facilitates a comprehensive comprehension of the information conveyed by fluctuations in equity capital cost within emerging industries, along with its underlying mechanisms and limitations.

Suggested Citation

  • Lin, Boqiang & Li, Minyang, 2023. "Emerging Industry Development and Information Transmission in Financial Markets: Evidence from China's Renewable Energy," Energy Economics, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:eneeco:v:128:y:2023:i:c:s0140988323006904
    DOI: 10.1016/j.eneco.2023.107192
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988323006904
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2023.107192?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:128:y:2023:i:c:s0140988323006904. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.