Show Less

Financing Corporate Growth in the Renewable Energy Industry

Series:

Christoph Ettenhuber

Financing constraints have been central to the political and economic debate about renewable energy development. This book addresses four related corporate finance questions. The first chapter reviews theoretical considerations and empirical evidence on so-called funding gaps. Chapters two and three analyze the genuine structures of equity and convertible debt offerings in the industry. The final part investigates to what extent business combinations are perceived as a valuable means to company growth. The analysis contains a variety of empirical findings that are novel to existing emerging industry and corporate finance research. It shows that many investors perceive the level of asymmetric information and regulatory risk, as well as the industry’s structure, to be detrimental to renewable energy finance.

Prices

Show Summary Details
Restricted access

Table of Contents

Extract

Acknowledgements .............................................................................................. V Preface ............................................................................................................... VII Table of Contents ................................................................................................ IX List of Tables ....................................................................................................... XI List of Figures .................................................................................................. XIII List of Abbreviations ......................................................................................... XV 1 Introduction...................................................................................................... 1 2 Financing Constraints in the Cleantech Industry – Theory and Evidence .... 13 2.1 Market frictions, market failure and funding gaps .......................................... 15 2.2 Firm characteristics and economic development ............................................ 18 2.3 Theoretical considerations on capital market frictions ................................... 23 2.4 Empirical evidence on capital market frictions ............................................... 29 2.5 Cleantech industry evidence ............................................................................ 38 2.6 Conclusion ....................................................................................................... 42 3 Growth Options, Market Timing and Seasoned Equity Offerings in the Renewable Energy Industry .......................................................................... 45 3.1 Data and methodology .................................................................................... 48 3.2 Logit regression analysis ................................................................................. 53 3.3 Risk dynamics ................................................................................................. 57 3.4 Use-of-funds analysis ...................................................................................... 58 3.5 Conclusion ....................................................................................................... 64 4 Signaling with Convertible Debt in the Renewable Energy Industry ........... 67 4.1 Literature review ............................................................................................. 70 4.2 Data and methodology .................................................................................... 72 4.3 Industry convertible debt structure .................................................................. 73 4.4 Short-term announcement effects .................................................................... 75 4.5 Issuer characteristics and failed signals .......................................................... 77 4.6 Cross-section analysis ..................................................................................... 80 4.7 Risk dynamics and buy-side effects ................................................................ 82 4.8 Conclusion ....................................................................................................... 85 X 5 M&A-Success in the Renewable Energy Industry ........................................ 87 5.1 Literature review ............................................................................................. 91 5.2 Data and methodology .................................................................................... 93 5.3 Short-term announcement effects .................................................................... 97 5.4 Cross-section analysis ................................................................................... 103 5.5 Conclusion ..................................................................................................... 105 6 Concluding Remarks and Outlook .............................................................. 107 Bibliography ...................................................................................................... 111

You are not authenticated to view the full text of this chapter or article.

This site requires a subscription or purchase to access the full text of books or journals.

Do you have any questions? Contact us.

Or login to access all content.