Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast
Renewable energy technologies play a crucial role in solving global energy and environmental issues, and the pace of the energy transition directly depends on improving their efficiency. Presently, the development and implementation of renewable energy systems are ensured mainly through state fundin...
| Main Authors: | , , , , , , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-01-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/16/3/1021 |
| _version_ | 1797624770868543488 |
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| author | Olha Prokopenko Tetiana Kurbatova Marina Khalilova Anastasiia Zerkal Gunnar Prause Jacek Binda Temur Berdiyorov Yuriy Klapkiv Sabina Sanetra-Półgrabi Igor Komarnitskyi |
| author_facet | Olha Prokopenko Tetiana Kurbatova Marina Khalilova Anastasiia Zerkal Gunnar Prause Jacek Binda Temur Berdiyorov Yuriy Klapkiv Sabina Sanetra-Półgrabi Igor Komarnitskyi |
| author_sort | Olha Prokopenko |
| collection | DOAJ |
| description | Renewable energy technologies play a crucial role in solving global energy and environmental issues, and the pace of the energy transition directly depends on improving their efficiency. Presently, the development and implementation of renewable energy systems are ensured mainly through state funding, the possibilities of which are limited. The potential of attracting private investments depends directly on their impact on companies’ profitability indicators, and the uncertainty regarding the return on investments is one of the main barriers affecting investors’ decision-making. Based on a vector autoregressive model for analysing the stationary time series, the paper explores the impact of long-term investments and research and development costs in renewable energy technologies on the financial performance of ten of the largest companies operating in this field. The study’s results showed that investments and spending on research and development positively affect such companies’ profitability indicators as earnings before interest, taxes, depreciation and amortisation, earnings before interest and tax, net income, and return on investment. The obtained results can be used to substantiate the economic effectiveness of investments in developing and improving renewable energy technologies when forming the companies’ financial policies to support them. |
| first_indexed | 2024-03-11T09:47:11Z |
| format | Article |
| id | doaj.art-b0b971de107749469afa5886ccb4a4df |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-11T09:47:11Z |
| publishDate | 2023-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-b0b971de107749469afa5886ccb4a4df2023-11-16T16:31:38ZengMDPI AGEnergies1996-10732023-01-01163102110.3390/en16031021Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and ForecastOlha Prokopenko0Tetiana Kurbatova1Marina Khalilova2Anastasiia Zerkal3Gunnar Prause4Jacek Binda5Temur Berdiyorov6Yuriy Klapkiv7Sabina Sanetra-Półgrabi8Igor Komarnitskyi9Estonian Entrepreneurship University of Applied Sciences, 11415 Tallinn, EstoniaScience Policy Research Unit, University of Sussex Business School, University of Sussex, Brighton BN1 9RH, UKDepartment of Monitoring and Quality, International University of Kyrgyzstan, Bishkek 720007, KyrgyzstanDepartment of Marketing and Logistics, Zaporizhzhia Polytechnic National University, 69063 Zaporizhzhia, UkraineWismar Business School, Wismar University, 23966 Wismar, GermanyDepartment of Social and Technical Sciences, Bielsko-Biała School of Finance and Law, 43-382 Bielsko-Biala, PolandDepartment of Economics and Management, Jizzakh Polytechnic Institute, Jizzakh 130100, UzbekistanDepartment of Insurance, Institute of Finance, Faculty of Economics and Sociology, University of Lodz, 90-136 Lodz, PolandDepartment of Administration and Public Policy, Pedagogical University of Krakow, 30-084 Krakow, PolandFaculty of the Hotel, Restaurant and Tourism Business, Kyiv National University of Culture and Arts, 01601 Kyiv, UkraineRenewable energy technologies play a crucial role in solving global energy and environmental issues, and the pace of the energy transition directly depends on improving their efficiency. Presently, the development and implementation of renewable energy systems are ensured mainly through state funding, the possibilities of which are limited. The potential of attracting private investments depends directly on their impact on companies’ profitability indicators, and the uncertainty regarding the return on investments is one of the main barriers affecting investors’ decision-making. Based on a vector autoregressive model for analysing the stationary time series, the paper explores the impact of long-term investments and research and development costs in renewable energy technologies on the financial performance of ten of the largest companies operating in this field. The study’s results showed that investments and spending on research and development positively affect such companies’ profitability indicators as earnings before interest, taxes, depreciation and amortisation, earnings before interest and tax, net income, and return on investment. The obtained results can be used to substantiate the economic effectiveness of investments in developing and improving renewable energy technologies when forming the companies’ financial policies to support them.https://www.mdpi.com/1996-1073/16/3/1021renewable energyinvestmentsresearch and developmentearnings before interesttaxesdepreciation and amortisation |
| spellingShingle | Olha Prokopenko Tetiana Kurbatova Marina Khalilova Anastasiia Zerkal Gunnar Prause Jacek Binda Temur Berdiyorov Yuriy Klapkiv Sabina Sanetra-Półgrabi Igor Komarnitskyi Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast Energies renewable energy investments research and development earnings before interest taxes depreciation and amortisation |
| title | Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast |
| title_full | Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast |
| title_fullStr | Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast |
| title_full_unstemmed | Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast |
| title_short | Impact of Investments and R&D Costs in Renewable Energy Technologies on Companies’ Profitability Indicators: Assessment and Forecast |
| title_sort | impact of investments and r d costs in renewable energy technologies on companies profitability indicators assessment and forecast |
| topic | renewable energy investments research and development earnings before interest taxes depreciation and amortisation |
| url | https://www.mdpi.com/1996-1073/16/3/1021 |
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