The Determinants of Systematic Risk of Renewable Energy Firms

Lars Hesselink, Lammertjan Dam, Wim Westerman*

*Bijbehorende auteur voor dit werk

Onderzoeksoutput: ChapterAcademicpeer review


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.
Originele taal-2English
TitelRegulations in the Energy Industry
SubtitelFinancial, Economic and Legal Implications
RedacteurenAndré Dorsman, Özgür Arslan-Ayaydin Arslan-Ayaydin, James Thewissen
Plaats van productieCham
Aantal pagina's27
ISBN van elektronische versie978-3-030-32296-0
ISBN van geprinte versie978-3-030-32295-3
StatusPublished - 2020

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