The performance of specialized and oriented diversified firms: A comparative analysis from the targeted expansion of renewable energy business of listed companies

Financing Management and Social Information

“…It emphasizes how enterprise financing through banks and stock markets is closely intertwined with their renewable energy business. On another note, Lin & Wang (2023) dynamically portray the process of enterprises developing renewable energy businesses. These two aspects provide a benchmark framework for this paper to explore the relationship between enterprises' renewable energy business and financing constraints.…”

“…In Equation (1), Renew Business i,t represents the proportion of renewable energy business, which is calculated based on business-specific data (Lin & Wang, 2023). Financing Constraints i,t denotes the financing constraints encountered by the enterprise, typically measured using WW-Index or KZ-Index when employed as a dependent variable (Kaplan & Zingales, 1997;Lamont et al, 2001;Whited & Wu, 2006).…”

“…Firstly, one practical approach is to employ instrumental variable estimation. Lin & Wang (2023) proposed a robust instrumental variable for expanding enterprises' renewable energy business. Specifically, a portion of cross-sectional data is utilized to depict the convenience of enterprises in developing their renewable energy business, and another portion of time series data with industry trends describes the development trajectory.…”

“…Furthermore, the 105 renewable energy companies are classified according to Wind's concept stock classification based on their core businesses and represent the prominent participants in the financial market. This sample set is widely used in similar studies, demonstrating that the overall average trend of the indicators calculated from the renewable energy business of these companies is highly correlated with the industry development trend (Lin & Wang, 2023).…”