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.

Details

Title
Effectiveness of Investing in the Stocks of Renewable Energy Companies in Poland
Author
Daniluk, Katarzyna 1   VIAFID ORCID Logo 

1  University of Lodz Doctoral School of Social Sciences, Poland 
Pages
47-55
Publication year
2022
Publication date
2022
Publisher
De Gruyter Poland
ISSN
20833725
e-ISSN
2451182X
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.2478/ers-2022-0004
ProQuest document ID
3156762442
Copyright
© 2022. This work is published under http://creativecommons.org/licenses/by/4.0 (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.