Analysis of the Factors Contributing to the Differences in Financial Data of Energy Companies

DOI

10.2991/978-94-6463-408-2_47How to use a DOI?

Keywords

Energy companies; Capital structure; Beta coefficient; Exploration and production of oil and gas

Abstract

This paper selects 30 companies in the energy industry, which is a fundamental, monopolistic, susceptible, and high-risk industry, and calculates the companies’ financial data such as D/V, beta coefficient and WACC. After analyzing the factors contributing to the differences in their financial data, the article concludes that companies engaged in exploration and production of oil and gas have lower D/V, higher beta coefficients and higher WACC, while companies engaged in other businesses such as storage and transportation of oil and gas or utilities such as electricity have the opposite. The companies’ ESG performances are also correlated with their financial data. The paper summarizes that companies engaged in exploration and production of oil and gas face higher bankruptcy costs and higher risks of stock price fluctuations. Meanwhile, an energy company’s financial data can infer whether it’s engaged in traditional oil and gas exploration and production or it’s transforming. The article finally argues that for traditional energy companies, promoting transformation can be a good choice.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Haojun Wang
PY  - 2024
DA  - 2024/05/07
TI  - Analysis of the Factors Contributing to the Differences in Financial Data of Energy Companies
BT  - Proceedings of the 9th International Conference on Financial Innovation and Economic Development (ICFIED 2024)
PB  - Atlantis Press
SP  - 412
EP  - 425
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-408-2_47
DO  - 10.2991/978-94-6463-408-2_47
ID  - Wang2024
ER  -