Companies In Energy Sector Research Articles

Systematic Risk in Energy Sector: Evidence from Pakistan Stock Exchange

Given the importance of systematic risk for the profit maximization and for the growth of the organization, the objective of the current study is to measure the systematic risk in energy sector companies listed in Pakistan Stock Exchange. To quantify the risk, the study has utilized the Capital Asset Price Model (CAPM). The study used the monthly stock price of Oil & Gas exploration companies and Oil & Gas marketing companies. This study examined the sensitivity and relationship of a sample of major oil and gas corporations to different financial risk factors. The results are aligned with theory of corporate finance and risk because our hypothesis upholds that bigger the organizations, better is their capacity to reduce the probable effects of the progressions in the political, social and practical climate which will lead the organizations to have a low systematic risk.

Klasterisasi Perusahaan Sektor Energi Berdasarkan Rasio Kinerja Keuangan dengan Metode Fuzzy C-Means

The increasing number of companies on the Indonesia Stock Exchange means that there are more investment options for investors, causing investors to be confused about choosing the right company to invest in. Investors need to avoid mistakes in investing, one of which is by analyzing the company's financial performance ratios. In this study, companies in the open energy sector will be grouped based on financial performance ratios using the Fuzzy C-Means method. The results of this clustering can be used as material for consideration for investors wishing to invest in the open energy sector. The Fuzzy C-Means method is a method for grouping objects where the presence of cluster members is based on the degree of fuzzy membership. The ratios to be used are Earning per Share (EPS), Price Earning Ratio (PER), Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The number of clusters to be formed is 2 clusters. The calculation results obtained are that there are 46 companies in Cluster 1 and 22 companies in Cluster 2. Based on the analysis of cluster characteristics, cluster 2 is a cluster that contains companies with high financial ratios with the highest ratio value being Earning per share and net profit margin This means that the financial performance of companies in this cluster is quite good.

The Effect of Company Competition, Company Size and Environmental Performance on Carbon Emissions Disclosure

This study aims to determine whether or not there is an effect of company competition, company size, and environmental performance on disclosure of carbon emissions. This research was conducted on energy sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period, totaling 237 companies obtained by purposive sampling. The method of analysis in this study is multiple regression analysis with IBM SPSS Statistics 26 software to test the variables of company competition, company size, and environmental performance on carbon emissions disclosure. The results of this study indicate that partially company competition have no effect on disclosure of carbon emissions. While company size and environmental performance affects the disclosure of carbon emissions. Simultaneously, company competition, company size, and environmental performance together affect the disclosure of carbon emissions

COMPARISON OF THE FINANCIAL PERFORMANCES OF THE COMPANIES OPERATING IN THE RENEWABLE ENERGY SECTOR TRADE ON BORSA ISTANBUL WITH THE ENTROPY BASED TOPSIS METHOD

The financial performance analysis of the companies operating in the energy sector of the countries will be an important indicator for the countries. Especially with the renewable energy sector gaining importance, the most basic way for companies in the renewable energy sector to be successful and ensure their continuity is to pay attention to their financial performance management and take a role in the global market. It is very important for companies to determine the status of their financial performance. Because of this situation, companies use ratio analysis, one of the methods used in the analysis of financial statements, in order to determine the status of their financial performance. It is used to determine the significant relationships between the accounts in the financial statements with the ratio analysis technique. In this method, mathematical relations are established between accounts or groups of accounts. With the results obtained with mathematical relations, it is tried to reach a judgment about the economic and financial structure of the enterprise.
 The aim of this study is to examine 8 companies operating in the energy sector in Turkey and operating in renewable energy sources among the companies registered in Borsa Istanbul (BIST). The financial statements of 8 companies for the years 2020, 2021, and 2022 will be examined using ratio analysis, one of the financial analysis methods, and their financial performance, liquidity, leverage, activity, and profitability will be examined. The reason for choosing the 2020 period is that it can reach the financial statements, and the number of companies in the renewable energy sector is at its maximum level. In the first chapter, energy and energy resources are defined, and the energy sector in the world and in Turkey is examined. In addition, similar studies in the literature are included in this section. In the second part, financial performance analysis and its methods are mentioned, and the multi-criteria decision-making method is mentioned. In the third part, their financial performances are analyzed and interpreted using the ratio analysis method. After these processes, after weighting the criteria objectively with Entropy methods, the companies were ranked according to their performances by making use of the distances from the ideal solution with TOPSIS, one of the multi-criteria decision-making (MCDM) methods. In the last part, the findings obtained as a result of the application were presented, and in the conclusion part, evaluations were made and interpreted.

PERAN MODERASI KOMITE ESG PADA PENGARUH KINERJA KEBERLANJUTAN TERHADAP KINERJA PASAR PERUSAHAAN SEKTOR ENERGI DI INDONESIA

This research was conducted because existing research has not found evidence that tests Environmental, Social, and Governance performance on market performance (Tobin's Q) which is moderated by the Environment, Social, and Governance committee in energy sector companies. Therefore, this research aims to test the moderating of the ESG committee on the influence of sustainability performance on the company's market performance. The research variables consist of the dependent variable as market performance, namely Tobin's Q, while the independent variable for sustainability performance is Environmental, Social and Governance performance. Next, the moderating variable is the Environment, Social, and Governance committee. We include the control variables firm size and firm age. Data collection was obtained from the Indonesian Stock Exchange, energy sector company websites, and the Center for Environment Social and Governance Studies, totaling 78 companies during 2014-2021. Next, using purposive sampling, we obtained 12 energy sector companies as samples. The analysis method was carried out using panel data regression by testing the Environmental, Social, and Governance performance variables against Tobin's Q without moderation and after being moderated by the Environmental, Social, and Governance committee with the control variables company size and age. The results of the research before being moderated by the ESG committee showed that Environmental, Social, and Governance performance had a positive and significant effect on market performance (Tobin's Q). Furthermore, after moderation, it showed that the Environment, Social, and Governance Committee strengthened the Total Environment, Social, and Governance performance positively and significantly towards market performance (Tobin's Q)

ReNew Power: Building Scale in the Indian RE Sector

This case describes the growth of ReNew Power during its first decade of operation. Sumant Sinha, a first-generation entrepreneur and former banker, founded the company, which grew from a modest generator-cum-developer of wind energy-based electricity to one of India's largest companies in the renewable energy sector. With the entry of large, well-funded players such as Tata Power and Adani Green into the Indian renewable sector by the end of 2020, Sinha had to make a strategic decision: should ReNew continue to organically scale up its presence in an increasingly competitive yet expanding Indian renewable energy sector, should it diversify geographically, or should it pursue emerging opportunities for vertical or horizontal integration within the sector? The case provides an opportunity to discuss how alternative business models and competitive scenarios may facilitate or inhibit the growth of a player in the renewable energy sector.

The Impact of Corporate Social Responsibility on Corporate Financial Performance --An Empirical Study of Chinese Energy Firms

As the impacts of environmental pollution and climate change on humanity have become increasingly severe, achieving sustainable development has heightened global concerns in recent years. An increasing number of companies have recognized the importance of corporate social responsibility (CSR) and are actively investing in enhancing their performance. Moreover, an increasing number of investors are considering social factors when making investment decisions. Although the potential impact of CSR on corporate financial performance (CFP) is a growing interest in related research filed, there still needs to be consensus on their relationship. This study seeks to address this gap in the context of the Chinese energy sector. By conducting fixed effect panel regression on the CSR scores, accounting financial indicators, and fundamental panel data of 876 listed companies in the Chinese energy sector over the past decade, this paper reveals a nonlinear positive impact of CSR on CFP. Further threshold regression is applied to identify distinct threshold values that affect different financial indicators. The findings of this paper complement the existing related research and provide valuable support and guidance for companies in the energy sector to undertake social responsibility and engage in social responsibility investments effectively.

Does Tax Avoidance Affect Company Values in Indonesia in 2020 – 2022?

This research aims to prove whether the decreasing trend in tax avoidance can increase company value and vice versa. Company value as a dependent variable is proxied using Tobin’s Q formula, tax avoidance as an independent variable is proxied using the GAAP ETR formula, and firm size as a moderating variable is proxied using the natural logarithm of total assets. The type of data used is secondary archival data in the form of financial report data of non-financial companies for the period 2020 to 2022 that are listed on the Indonesia Stock Exchange. The sample obtained was 705 financial reports and the data was then analyzed using structured equation modeling. The results of the research show that tax avoidance has a significant positive effect on the company value of energy sector companies from 2020 to 2022 at an error rate of 5%, and firm size can moderate tax avoidance so that it has a significant negative effect on the company value of basic material sector companies from 2020 to 2022 at an error rate of 10%.

The effect of corporate governance on firm performance: perspectives from an emerging market

The aim of this research is to inspect whether Corporate Governance (CG) attributes such as Audit Meeting Frequency, Ownership Concentration, Board Meeting Frequency, Foreign Ownership, Institutional Ownership, Board Gender Diversity, Audit Committee Size, Board Size, Audit Reputation and CEO Compensation affect firms’ performance in Pakistan. This research employed the pooled least square method to estimate the association among attributed of CG and firm performance measures (Return on Asset and Tobin’s Q) by selecting the Cement Sector and Energy sector companies listed in Pakistan Stock Exchange (PSX) during 2009–2022. A substantial result is that the energy sector’s CG system does not differ from the cement sector. Tobin’s Q is lesser than ROA, suggesting the same condition as companies in the cement sector. On average, firms in the energy sector are older than the firms in the cement sector. It contradicts the result of profitability proxies of the energy sector. Being older firms, the profitability proxies show lower returns as compared to cement sector firms. Pakistan needs a uniform CG code and the need for good CG practices for specific approaches of firms. This study enhances the literature in CG domain by investigating the impact of CG processes in Pakistani firm’s performance. In Pakistan, there are studies available on the topic but the comparison between the selected two industries with such a large data set are the unique elements of the current research. In prior studies, the time interval was also short, only five years. Further, the firm performance was measured by an accounting-based tool and did not include a market-based tool for performance, as well as variables for CG were also limited.

Empirical study on the impact of tax reduction on the development of Chinese green energy industry.

The implementation of tax reduction policies in China represents a significant and effective strategy. Accordingly, this strategy has been designed to facilitate the development of a green economy by establishing a market-oriented allocation system for environmental and resource elements, while simultaneously invigorating microeconomic entities. As the nation navigates towards the adoption of green, low-carbon production, and lifestyles, the role of clean and green energy emerges as a vital necessity. Therefore, to explain the impact of tax reduction policies on the green energy industry, this study collected and compiled financial indicator data from 100 listed companies in the green energy sector, utilizing the China Stock Market Accounting Research database (CSMAR) as a source for research samples. A Panel Vector Auto Regression (PVAR) model was employed to observe the effects of tax reduction policies on the energy industry, while the dosage effects Difference in Difference (DID) model was utilized to verify and supplement the findings. In summary, the findings of this study can be summarized as follows: firstly, tax reduction policies exert a positive impact on the green energy industry by effectively mitigating the financial cost burden on green energy enterprises, thereby reducing production expenses and amplifying their profitability. Secondly, such policies bolster the capital turnover rate of enterprises in the short term, thereby enabling augmented research and development investments, refining production efficiency, and enhancing competitiveness. Through rigorous analysis and demonstration, the research findings accentuate the stimulative and propulsive impacts of tax reduction policies on the flourishing development of the green energy industry. Furthermore, this study provides relevant fiscal and tax policy recommendations, thoughtfully derived from the research findings.

Profitabilitas, Leverage, Kepemilikan Manajemen, dan Pengungkapan Corporate Social Responsibility

Disclosure of corporate social responsibility is reporting information to stakeholders about company activities regarding social and environmental responsibility. The research is aimed at obtaining empirical studies regarding the influence of profitability, leverage and management ownership on CSR disclosure. This research uses 188 observations from energy sector companies listed on the Indonesia Stock Exchange in 2018-2021. Data were analyzed using multiple linear regression analysis. The results of the analysis show that profitability, leverage and management ownership have a positive effect on CSR disclosure. This implies that stakeholder theory is able to underlie the study of CSR disclosures.
 Keywords: Stakeholder Theory; Disclosure; Corporate Social Responsibility

Environmental disclosure, governance score, and tax avoidance: Evidence from Indonesian energy sector companies

Environmental disclosure, governance score, and tax avoidance: Evidence from Indonesian energy sector companies

Pengaruh Profitabilitas dan Gender Diversity terhadap Luas Pengungkapan CSR (Corporate Social Responsibility)

Company activities not only have positive impacts but also negative impacts, one of the negative impacts is pollution and damage to the surrounding environment. This research aims to analyze the influence of profitability and gender diversity on the extent of Corporate Social Responsibility (CSR) disclosure in energy and basic sector companies listed on the Indonesia Stock Exchange in 2019-2021. CSR disclosure is the dependent variable in this research which is measured based on the 2016 GRI Standard index. The independent variables used in this research are Profitability (ROA and NPM) and gender diversity. Sampling used purposive sampling with a total of 77 data samples. The data analysis method used is multiple linear regression with SPSS 25 software. The research results show that NPM has a positive effect on the extent of CSR disclosure, gender diversity has a negative effect on the extent of CSR disclosure, and ROA has no effect on CSR disclosure.

Performance of energy sector companies in time of pandemic COVID-19; International evidence

This study provides a comprehensive analysis of the global impact of COVID-19 on energy sector companies, taking into account company characteristics, market distinctions (developed and emerging markets), and sector differentiations (fossil fuels and alternative fuels). By examining financial report data from 1252 companies across 64 countries during the period 2018–2022, the study reveals a negative influence of COVID-19 on the performance of energy sector companies across all market and sector categories. Importantly, the findings highlight the significant role of company characteristics, including firm size, liquidity, and capital structure, in shaping the performance outcomes of energy sector companies.

THE EFFECT OF IMPLEMENTING GREEN ACCOUNTING AND CSR DISCLOSURES ON THE QUALITY OF FINANCIAL REPORTING WITH INSTITUTIONAL OWNERSHIP AS A MODERATION VARIABLE

The purpose of this study was to investigate the effects of incorporating green accounting and corporate social responsibility (CSR) disclosure on the quality of financial reporting, with a focus on the energy sector companies listed on the Indonesia Stock Exchange from 2019 to 2021. The researchers collected secondary data from the official website of the Indonesia Stock Exchange (www.idx.co.id) or the company websites using purposive sampling. To analyze the data, the researchers employed panel data regression analysis and moderating regression analysis. The results of the study showed that both green accounting and CSR disclosure had a significant impact on the quality of financial reporting. This suggests that companies that incorporate green accounting practices and disclose their CSR activities tend to have higher-quality financial reports. Furthermore, the study found that institutional ownership played a moderating role in the relationship between CSR disclosure and the quality of financial reporting. Specifically, companies with higher levels of institutional ownership showed a stronger relationship between CSR disclosure and financial reporting quality. This implies that institutional investors, who often have a long-term perspective and a focus on sustainability, may place more importance on CSR disclosure when evaluating the quality of financial reports. However, the study did not find any significant impact of institutional ownership on the relationship between green accounting and the quality of financial reporting. This suggests that institutional ownership does not play a significant role in strengthening the relationship between green accounting practices and financial reporting quality.

PENGARUH PROFITABILITAS, TUNNELING INCENTIVE, DAN INTANGIBLE ASSETS TERHADAP TRANSFER PRICING

One of the problems faced by multinational companies occurs when determining transfer pricing, many different factors can affect the determination of transfer pricing. This study aims to determine the effect of profitability, tunneling incentives and intangible assets on transfer pricing. The population in this study are energy sector companies listed on the Indonesia Stock Exchange for the 2017-2021 period. As a research sample, 15 of 79 companies in the energy sector were taken using a purposive sampling method so that the total observations in this study were 75 observations. The data analysis technique used is multiple linear regression testing using SPSS version 25 software. The result of the analysis in this research showed that profitability and tunneling incentive has negative effect on transfer pricing whilet intangible assets positive effect on transfer pricing. In the determination coefficient test, it shows that profitability, tunneling incentive, and intangible assets variables affect transfer pricing by 34.4%, while the remaining 65.6% is explained by other variables outside of the study

The Effect of Market Value Added, Market Capitalization, and Foreign Ownership on Stock Return in Energy Sector Companies Indonesia Stock Exchange

The rate of return is one of the primary considerations in making investment decisions. Stock return is the result obtained from stock investment activities, which can be in the form of realized returns and expected returns. This study aims to determine the effect of Market Value Added, Market Capitalization, and Foreign Ownership on Stock Returns. The object research was carried out at Energy Sector Companies listed on the Indonesia Stock Exchange from 2017 to 2021. This type of research is quantitative research using a purposive sampling technique. There are 26 sample companies selected from 39 companies. The sample is determined based on: 1) Energy sector companies listed on the main board of the Indonesia Stock Exchange for the 2016-2017 period. 2) Energy sector companies that do not publish annual reports for the 2017-2021. 3) Energy sector companies must provide complete data according to the research variables. This study analyzed data using multiple linear regression, with statistical processing using IBM SPSS 26. The analysis of this study shows that market value added and capitalization affect stock returns. Meanwhile, foreign ownership does not affect stock returns.

What drives organizational agility in energy sector companies? The role of strategic CSR initiatives and the dimensions of proactive CSR

The speed of global changes, which are forcing energy companies to take proactive initiatives so as to take advantage of market opportunities, increase the importance of organizational agility as a key strategic alignment mechanism. The second most important mechanism determining the development of companies in the energy sector is social responsibility, which by nature should be proactive and embedded in the development strategy. Drawing on research linking organizational agility to social responsibility, this article aims to explain how strategic CSR initiatives and a proactive approach to CSR affect organizational agility in energy sector companies. Data collected from 197 Central European energy firms using CAWI and CATI methods was analyzed using SEM modeling. The results confirm the direct impact of strategic CSR initiatives on organizational agility, through the mediating variable – social dimension of proactive CSR. The study also suggests a direct impact of strategic CSR initiatives on particular types of proactive CSR.

Measuring the impact of corporate social responsibility in the energy sector.

Energy companies are in the spotlight regarding the environmental pressure to address the current environmental issues by initiating the sets of social responsibilities. Energy sector companies are actively adopting Corporate Social Responsibility (CSR) practices to address the increased pressure and enablement to manage and prevent the risks of environmental impact at the same time concentrating on the economic growth. The current study provides a systematic literature review identifying CSR initiative measures towards sustainability and proposes a framework of CSR measurements in the energy sector. The framework combines the Search, Appraisal, Synthesis, and Analysis (SALSA) method together with Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) and PSALSAR (Protocol, Search, Appraisal, Synthesis, Analysis and Report). Moreover, for setting the research scope, PICOC (Population, Intervention, Comparison, Outcome, and Context) is applied. As a result, eleven CSR measures for the energy sector were identified. The measurements were classified into 4 pillars: environmental pillar, stakeholder communication and external image, financial pillar, and organizational pillar. The environmental impact and GHG reduction align with the ecological modernization theories. Green energy innovations find theoretical resonance in the diffusion of innovation theories. Stakeholder engagement and branding link to the stakeholder theory, while financial performance, to the shareholder value theories. Occupational health and safety theory support the employee safety and corporate culture considerations. These measures, selected through theoretical lenses and systematic review, contribute to shaping a sustainable energy landscape. Furthermore, the research results were discussed, and the future research agenda together with policy recommendations were provided.

Creating shared value through open innovation: Insights from the case of Enel industrial plants

AbstractDespite the significant attention gained by the concept of creating shared value (CSV) over the past decade, there is a lack of empirical research on corporate practices that achieve social and environmental benefits through CSV dynamics. Through an in‐depth single case study, this research explores open innovation (OI) practices contributing to the grand challenge of climate change and their role as microfoundations in the three CSV dynamics proposed by Porter and Kramer: (1) reconceiving products and markets; (2) redefining productivity in the value chain; and (3) enabling local cluster development. Building on a 3‐year (October 2019–October 2022) interaction with Enel—a very large company in the renewable energy sector—we collected qualitative data on the OI practices implemented in the construction, operating, and repurposing phases of three of its industrial sites. Employing a three‐step data analysis process, the study identified 29 OI practices across the sites, which have been grouped into 11 CSV microfoundations. Our findings contribute to understanding the organizational factors in sustainable value creation by bridging the gap between CSV and OI literature and confirm the effectiveness of OI models for addressing societal challenges like climate change.