Industrial electricity prices in the European Union following restructuring: A comparative panel-data analysis

del-Río, Belén; Fernández–Sainz, Ana; Mancisidor, Itziar Martínez de Alegría

doi:10.1016/j.jup.2019.100956

Cited by 5 publications

(3 citation statements)

References 25 publications

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“…Static [equation (2)] and dynamic [equation (3)] panel data methods are used to estimate equation (1). Del-Río et al (2019) and Lee et al (2012) have justified using both methods in the same paper. It ensures the robustness of the results and covers all other possibilities of an association between the endogenous and exogenous variables.…”

Section: Methodsmentioning

confidence: 93%

Corporate governance impact on dividend policy of NIFTY-500 indexed Indian pharmaceutical companies (2014–2019)

Pinto¹,

Rastogi

2022

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Purpose This study aims to evaluate the influence of corporate governance index (CGI), ownership concentration (OC) and other features on the dividends of listed Indian pharmaceutical companies. The other features included are leverage, excess return over cost of equity and stock-market return. This study thus helps to provide more insights on the dividend distribution issues for a shareholder in the challenging and demanding pharma industry, especially when stakes are high. Design/methodology/approach The data for all 26 pharmaceutical companies which form part of the NSE NIFTY-500 index for six years (2014–2019) is procured using Centre for Monitoring Indian Economy’s (CMIEs) Prowess database. An eight-pointer scale (unweighted scale) is used to develop the CGI. For OC, this paper considers the proportion of promoters’ shareholding, domestic institutional investors’ shareholding and foreign owners’ shareholding. Both static and dynamic panel data models are used to evaluate the effect of CGI and OC on dividends. Findings The panel data analysis depicts that CGI significantly positively influences the dividends of pharmaceutical companies in India. Thus, the authors find support for La Porta et al.’s outcome agency model. The results also reveal that only promoters’ holdings are significantly inversely related to dividends out of the three OC variables used for this study. This discussion implies that family-run pharmaceutical companies in India tend to retain profits instead of distributing dividends. Research limitations/implications This study provides two direct insights for policymakers and stakeholders. First, because this study shows that CGI significantly positively influences dividends, corporate governance (CG) is an essential factor for determining dividends. Second, because the results also reveal that OC in the hands of promoters hurts dividends, it implies that the higher the promoter holding, lesser is the dividend distributed by the company. Both these results can be used as a quantitative tool by investors to assess Indian pharmaceutical companies better. However, a similar study could be directed to assess the impact of CGI and OC on dividends of other industries. Moreover, additional variables of CG and OC can also be evaluated in further detail. There is also a need to empirically validate the impact of CG and OC on a company’s performance. Originality/value The results are robust and reveal that variation in CGI does impact dividend policy. This aids in confirming that CG is a crucial aspect influencing dividends. The findings also add to the increasing studies across the globe evaluating the influence of CG and OC on dividends.

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Section: Methodsmentioning

confidence: 93%

Corporate governance impact on dividend policy of NIFTY-500 indexed Indian pharmaceutical companies (2014–2019)

Pinto¹,

Rastogi

2022

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“…A few studies have investigated the effects of electricity market deregulation and liberalization of electricity markets on electricity prices, with mixed results between the initial price decline and later increases [1][2][3][4][5][6][7][8][9][10][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][73][74][75][76].…”

Section: Hypothesis 4 (H4)mentioning

confidence: 99%

“…In the EU member states, as well as many other countries in the world, the electricity markets are no longer under government control and electricity as a special commodity is traded under supply and demand market conditions and using different rules, such as spot and derivative contracts [29][30][31][32]. Our focus is on electricity prices and electricity demand by consumption in industry and households [33][34][35].…”

Section: Introductionmentioning

confidence: 99%

Electricity Markets during the Liberalization: The Case of a European Union Country

Bojnec

Križaj

2021

Energies

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This paper analyzes electricity markets in Slovenia during the specific period of market deregulation and price liberalization. The drivers of electricity prices and electricity consumption are investigated. The Slovenian electricity markets are analyzed in relation with the European Energy Exchange (EEX) market. Associations between electricity prices on the one hand, and primary energy prices, variation in air temperature, daily maximum electricity power, and cross-border grid prices on the other hand, are analyzed separately for industrial and household consumers. Monthly data are used in a regression analysis during the period of Slovenia’s electricity market deregulation and price liberalization. Empirical results show that electricity prices achieved in the EEX market were significantly associated with primary energy prices. In Slovenia, the prices for daily maximum electricity power were significantly associated with electricity prices achieved on the EEX market. The increases in electricity prices for households, however, cannot be explained with developments in electricity prices on the EEX market. As the period analyzed is the stage of market deregulation and price liberalization, this can have important policy implications for the countries that still have regulated and monopolized electricity markets. Opening the electricity markets is expected to increase competition and reduce pressures for electricity price increases. However, the experiences and lessons learned among the countries following market deregulation and price liberalization are mixed. For industry, electricity prices affect cost competitiveness, while for households, electricity prices, through expenses, affect their welfare. A competitive and efficient electricity market should balance between suppliers’ and consumers’ market interests. With greening the energy markets and the development of the CO2 emission trading market, it is also important to encourage use of renewable energy sources.

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A synthetic bids simulation for power market deregulation

Ciarreta,

Damoun,

Espinosa

2024

Energy Policy

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Industrial electricity prices in the European Union following restructuring: A comparative panel-data analysis

Cited by 5 publications

References 25 publications

Corporate governance impact on dividend policy of NIFTY-500 indexed Indian pharmaceutical companies (2014–2019)

Corporate governance impact on dividend policy of NIFTY-500 indexed Indian pharmaceutical companies (2014–2019)

Electricity Markets during the Liberalization: The Case of a European Union Country

A synthetic bids simulation for power market deregulation

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