4 Signaling with Convertible Debt in the Renewable Energy Industry

2016 ◽  
Keyword(s):  
Renewable Energy ◽  
Energy Industry ◽  
Convertible Debt ◽  
Renewable Energy Industry

Signaling with convertible debt in the renewable energy industry?

2015 ◽  
Vol 9 (2) ◽  
pp. 274-292 ◽  
Author(s):  
Christoph Ettenhuber ◽  
Dirk Schiereck
Keyword(s):  
Renewable Energy ◽  
Stock Returns ◽  
Energy Industry ◽  
Convertible Debt ◽  
Market Reactions ◽  
Content Type ◽  
Shift Analysis ◽  
Financing Costs ◽  
Option Pricing Theory ◽  
Renewable Energy Industry

Purpose – The purpose of this paper is to show how convertible debt is used in the renewable energy industry. The authors argue that there is an investor rationing component to the design and market impact of convertible debt securities. Design/methodology/approach – The authors apply event study methodology, option pricing theory and risk shift analysis to examine capital market reactions following the issuance of convertible debt by exchange-listed companies of the renewable energy sector. Findings – Contrary to prior cross-industry research findings, the authors show that convertible debt in the renewable energy industry tends to have a debt-like structure, and its issue is associated with strongly negative announcement returns. The authors further show that convertible issuers face high business risk and adverse selection costs. Practical implications – The results have important implications for both renewable energy industry companies and investors. For example, one problem is that the risk-mitigating features of convertible debt may not materialize, if issuers fail to credibly signal firm quality to the markets. Furthermore, excessive growth assumptions and mismatches between project risk/return and financing costs may render it more difficult to create credible signals. Originality/value – The paper contributes to three primary strands of literature. One is the research on finance and growth. Here, this paper provides new insights into risk-mitigating securities that should more effectively mirror the risk and return distributions of emerging industry issuers. Additionally, it extends the research on the motives for convertible debt offerings and provides insight on stock returns around such announcements.

The Factors Affect Company Performance in Renewable Energy Industry

2017 ◽  
Vol 5 (6) ◽  
pp. 188-204 ◽  
Author(s):  
YINLIN TSAI ◽  
Johnny Tung
Keyword(s):  
Renewable Energy ◽  
Capital Intensity ◽  
Performance Measure ◽  
Energy Industry ◽  
Long Term Results ◽  
Company Performance ◽  
Firm Level ◽  
Country Level ◽  
Performance Determinants ◽  
Renewable Energy Industry

Concerns about global warming and climate change are generating interest in renewable energy measures with the purpose to minimize environmental impact. Promoting renewable energy production becomes indispensable since its represent a tiny fraction of energy consumed. The purpose of this study is to identify the performance determinants are divided in country specific advantages and firm specific advantages. Companies were selected from Bloomberg and filtered due to its information ava ilability from COMPUSTAT to construct a Panel Data structure. The results proved that both country level (shares of renewable and energy consumption) and firm level (market capitalization, employee growth rate and capital intensity) determinants were signi ficant in the renewable energy industry. Through the analysis, it’s possible to realize that return on assets it’s a performance measure with long term results, but unlike it, gross profit margin is variable that demonstrate short term results. We conclude that renewable energy industry has a great potential due to its results performed.

scholarly journals Setting an agenda for biofouling research for the marine renewable energy industry

2017 ◽  
Vol 19 ◽  
pp. 292-303 ◽  
Author(s):  
J. Loxton ◽  
A.K. Macleod ◽  
C.R. Nall ◽  
T. McCollin ◽  
I. Machado ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Energy Industry ◽  
Marine Renewable Energy ◽  
Renewable Energy Industry

scholarly journals An Influence of Group Purchasing Organizations on Financial Security of SMEs Operating in the Renewable Energy Sector—Case for Poland

Energies ◽  
2020 ◽  
Vol 13 (11) ◽  
pp. 2926 ◽  
Author(s):  
Grzegorz Zimon ◽  
Marek Sobolewski ◽  
Grzegorz Lew
Keyword(s):  
Renewable Energy ◽  
Environmental Changes ◽  
Research Question ◽  
Energy Sector ◽  
Energy Industry ◽  
The European Union ◽  
Operating Cycle ◽  
Cash Conversion Cycle ◽  
Energy Companies ◽  
Renewable Energy Industry

European countries are increasingly using renewable energy. Poland is an outsider of such solutions. The Polish energy sector is primarily based on energy produced from coal. However, environmental changes and regulations of the European Union are forcing the increased use of energy from renewable sources. Renewable energy is an industry that is still developing in Poland. At the same time, Poland is a country where the political decisions of the government over the last few years have resulted in a significant limitation of the possibilities of renewable energy development. These actions have also resulted in lowering the profitability of the currently operating renewable energy enterprises, especially those from the sector of small and medium-sized enterprises. An opportunity for SMEs operating in the renewable energy sector is to merge into industry purchasing groups. The aim of the article—and at the same time the research question—is: Is it financially safer for renewable energy companies to operate within purchasing groups compared to companies operating independently in this industry? Traditional ways of purchasing can be transferred to integrated purchasing systems, which will be created by purchasing groups associating renewable energy companies. For this purpose, the financial effects of the implementation and functioning of the purchasing groups in the renewable energy sector in relation to entities operating independently were examined. In the research of renewable energy SMEs, a comparative analysis of key indicators determining the possibility of continuing the activity of these entities was made. The following indicators were examined: current financial liquidity ratio, return on sales, operating cycle, cash conversion cycle, share of receivables in current assets, share of inventory in current assets, turnover ratios, level of receivables, liabilities and profitability. The scientific literature is dominated by studies on purchasing groups in the pharmaceutical and construction industries. Thanks to the research conducted, it has been indicated that the renewable energy industry can also improve its profitability, and thus the possibility of safe continuation of operations by extending the business model to inter-entity cooperation within purchasing groups. Increasing the efficiency of individual entities of the renewable energy industry within purchasing groups becomes particularly important during the COVID-19 pandemic. Statistical analyses and their graphic presentation present the significant impact on the safety and profitability of renewable energy entities in the form of purchasing groups.

Nanomaterial Catalysts for Organic Photoredox Catalysis-Mechanistic Perspective

Nanoscale ◽  
2021 ◽  
Author(s):  
Qiushi Hu ◽  
Xuemeng Yu ◽  
Shaokuan Gong ◽  
Xihan Chen
Keyword(s):  
Renewable Energy ◽  
Solar Energy ◽  
Energy Conversion ◽  
Solar Energy Conversion ◽  
Vital Role ◽  
Energy Industry ◽  
Photoredox Catalysis ◽  
Renewable Energy Industry

Solar energy conversion plays a vital role in the renewable energy industry. In recent years, photoredox organic transformation have been explored as an alternative way to use solar energy. The...

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