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Do economic and societal factors influence the financial performance of alternative energy firms?

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  • Gupta, Kartick

Abstract

Prior studies find that the technology sector and oil prices strongly influence the financial performance of alternative energy firms. The results, however, are country-specific and the role of country-level determinants is yet to be investigated. We argue that economic and societal factors are important in explaining cross-country differences in the financial performance of alternative energy firms. We analyse the financial performance of alternative energy firms using firm-level data from 26 countries. We find that the market rewards alternative energy firms when country-level technology and innovation are well developed. Additionally, we find that national cultural dimensions explain cross-country differences in the financial performance of alternative energy firms.

Suggested Citation

  • Gupta, Kartick, 2017. "Do economic and societal factors influence the financial performance of alternative energy firms?," Energy Economics, Elsevier, vol. 65(C), pages 172-182.
    • Handle: RePEc:eee:eneeco:v:65:y:2017:i:c:p:172-182
    DOI: 10.1016/j.eneco.2017.05.004
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    More about this item

    Keywords

    Alternative energy stock returns; Institutional quality; Cultural dimensions;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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