Liberalization, financial performance and key strategic choices: some empirical evidence from energy companies
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 31 May 2024
Issue publication date: 18 November 2024
Abstract
Purpose
This paper aims to examine the impact and the link between some key strategic choices and financial performance of energy companies. In fact, in the light of the European energy directives and the related ransformations, it is interesting to analyze how much the financial performance of electricity and gas companies affects some choices related to some main characteristics of companies, and thus their active role.
Design/methodology/approach
This study uses data collected from Amadeus, a database from Bureau Van Dyck, to create a sample consisting of an unbalanced panel of annual period series from 2009 to 2017. The sample includes all the electricity and gas limited retailer companies registred in two countries, Italy and the UK. The used method and post-estimations include probit models and as post-estimation marginal effects and matrices of correlation.
Findings
Results identify asset turnover (sales revenue/total assets), efficiency of invested capital, as the key drivers of the strategic decisions analyzed (that is being part of a group of companies, the business chosen, the type of country and if they are companies operating in more than one phase). Age, size and headquarter of company are also significant when they are included in a larger model as control variables.
Originality/value
The combination of the analysis of two of the largest European electricity and gas retail markets and inclusion of financial values as performance measures are key contributions of this paper.
Keywords
Acknowledgements
Statements about ethics and integrity policies.
Data availability statement: The data that support the findings of this study are available from the corresponding author upon reasonable request.
Funding: No funds received
Conflict of interest disclosure: no conflict of interest
Ethics approval statement: no need
Patient consent statement: no need Permission to reproduce material from other sources: no need
Citation
Iovino, F., Koufopoulos, D.N., Maielli, G. and Meredith, R. (2024), "Liberalization, financial performance and key strategic choices: some empirical evidence from energy companies", International Journal of Energy Sector Management, Vol. 18 No. 6, pp. 2252-2274. https://doi.org/10.1108/IJESM-01-2024-0006
Publisher
:Emerald Publishing Limited
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