PurposeThis study aims to examine the attractiveness of the regional Dow Jones Sustainability Indexes (DJSI) and several renewable energy indexes during December 31, 2010 to December 31, 2019. This study uses a risk-return analysis and a set of explanatory factors. Lastly, this study conducts a comparative analysis of these indexes with conventional indexes.
Design/methodology/approachThis study uses data from Eikon, a Thomson Reuters database. To analyze the indexes’ behavior, this study uses the indexes’ annual return as of December 31 for each year. Next, this study estimates the Fama and French’s five-factor model using an ordinary least squares regression for regional DJSI and renewable energy indexes.
FindingsThe results show that regional DJSIs delivered returns both above and below conventional indexes. In contrast, renewable energy indexes had high betas and negative returns, making them unattractive to investors.
Practical implicationsThe results imply the need for public financing programs that support the transition to a sustainable economy and reduce risk and increase the return on private investment.
Social implicationsThis study provides insights for policymakers regarding the importance of sustainability indexes in the transition to a green economy.
Originality/valueThis study contributes to the growing literature on Fama and French’s five-factor model of sustainability indexes, especially in the current context characterized by intense green political changes. In particular, this study complements the few studies that have addressed the economic implications of renewable energy indexes in markets.
This article investigates the conceptual evolution of qualitative research in the field of energy and fuel focus on oil and gas research from 1990 to 2018 identifying the main topics and practical applications which it has been used. The automatic approach was based on a co-word analysis and combines performance analysis and science mapping. The considerable number of studies published according to the journals in energy and fuel field focus on oil and gas research indexed in ISI Web of Science makes it possible to undertake a conceptual analysis of how the field has evolved. To observe the conceptual evolution of energy and fuel, we define three consecutive periods:
The main objective of this document is to know the impact that the peak oil phenomenon has on the financial costs of the five most important oil and gas companies in the 2011-2015 period. We will analyze the economic-financial behavior of the multinationals through the financial statements in the framework of the peak of oil. The peak of oil can affect the most important financial statements (for example, investment risk, leverage) used by investors and shareholders. The methodology consists of two steps: (1) create a knowledge base based on information from the financial statements of the five major companies and (2) investigate whether the peak of oil has an economic-financial impact on the key financial ratios. All three methods contain that they are carried out in vertical analysis, horizontal analysis and financial ratios. These three methods are part of the analysis of the financial statements. The results suggest that the drop-in oil production affects investment decisions in new oil projects, dividend payment policy and stock purchases. Additionally, we study the evolution of oil prices in relation to the parts of the financial statements of the companies studied. Although oil prices were at important levels, nevertheless, companies had a decrease in net income due to the phenomenon of peak oil production. Investments in oil projects have been profitable, managers have been influenced by the peak of oil. The phenomenon of peak oil is something that has to do with the account of the investment policies of companies. The duration of the oil peak and the fluctuation of the price of oil is verified by the recipients of future investment in oil and gas.
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