Effectiveness of Investing in the Stocks of Renewable Energy Companies in Poland

Daniluk Katarzyna ()
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Daniluk Katarzyna: University of Lodz Doctoral School of Social Sciences, Poland

Economic and Regional Studies / Studia Ekonomiczne i Regionalne, 2022, vol. 15, issue 1, 47-55

Abstract: Subject and purpose of work: This study investigates the effectiveness of equity investment in renewable energy companies. The aim of the research is to compare the effectiveness of investing in the stocks of companies from the conventional and renewable energy sector on the Warsaw Stock Exchange. Materials and methods: The research material consisted of the stock prices of selected energy companies listed on the Warsaw Stock Exchange’s Main Market and NewConnect. Representative investment portfolios were created and their average monthly logarithmic rates of return, standard deviations and Sharpe ratios for the period 2013–2020 were examined. Results: The portfolios of renewable energy companies were characterised by higher risk, but also higher average returns; as a result, they achieved higher risk-adjusted efficiency ratios than the portfolios of conventional energy companies. Conclusions: Shares in renewable energy companies, despite a significant risk, can be an attractive form of investment, which is crucial for privately financing the energy transformation in Poland.

Keywords: equity investment; renewable energy sources; portfolio analysis; energy companies (search for similar items in EconPapers)
JEL-codes: G11 G32 G41 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecoreg:v:15:y:2022:i:1:p:47-55:n:2

DOI: 10.2478/ers-2022-0004

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