Language:

Financial Leverage and its Determinants in Companies Producing Electricity from Wind Resources in Latvia

Economics and business, 2015-08, Vol.27 (1), p.29-39 [Peer Reviewed Journal]

Full text available

Citations Cited by

Title:
Financial Leverage and its Determinants in Companies Producing Electricity from Wind Resources in Latvia
Author: Bobinaite, Viktorija
Subjects: electricity ; financial leverage ; pecking order theory ; static tradeoff theory ; Wind
Is Part Of: Economics and business, 2015-08, Vol.27 (1), p.29-39
Description: The paper aims to analyse the development of the financial leverage and its determinants in companies producing electricity from wind resources in Latvia during 2005-2012. The financial ratio technique is used to compute the financial leverage in the companies and the regression analysis method is employed to determine the relationships between variables. The results of the analysis revealed that wind electricity generating companies use substantial share of debt and the financial leverage is increasing. Statistically significant relationships were found between the financial leverage and profitability of companies, their growth opportunities, collateral value of assets, size of the company and an effective tax rate. Results will be used to construct weighted average cost of capital (WACC) for the economic assessment of investment into wind electricity sector in Latvia.
Publisher: De Gruyter Open
Language: English
Identifier: ISSN: 2256-0394
EISSN: 2256-0394
DOI: 10.1515/eb-2015-0005
Source: Open Access: DOAJ Directory of Open Access Journals
Walter De Gruyter: Open Access Journals

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Searching Remote Databases, Please Wait