Economics, Econometrics and Finance
4 years ago

Energy Sector Faces Double Cost of Equity Financing, Highest Risk Among Uranium Companies

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Energies
Energy Sector Risk and Cost of Capital Assessment—Companies and Investors Perspective
Justyna Franc-Dąbrowska, Magdalena Mądra-Sawicka, Anna Milewska

Paper Summary

The article examines the costs of capital in energy companies by looking at investor and market risks. They analyzed companies' financial data from 2015 to 2019 and found that equity financing costs were higher than debt costs. The highest cost of capital was linked to political and regulatory risks, especially for uranium and oil companies. The study helps understand how different factors affect the cost of capital in the energy sector.

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