How does the fluctuation in oil prices impact the financial performance of alternative energy companies?

  • József Dancsó (Student)

Student thesis: Master's Thesis


My thesis investigates the impact of oil price volatility on the profitability of alternative energy companies. The dissertation focuses on two primary research questions: firstly, how does oil price volatility directly influence the profitability of alternative energy companies, and secondly, how does this relationship vary when controlling for firm-specific and macroeconomic variables. The empirical analysis employs a fixed effect regression approach with firm fixed effects, analyzing a global panel dataset of alternative energy companies between 2017 and 2022. The results reveal a positive and significant relationship between oil price volatility and alternative energy companies' Return on Assets ratios with a magnitude of 0,00209, 0,00218, and 0,00366, respectively, through 3 different scenarios. Overall, my models’ coefficients are jointly different from zero, indicating relevant explanatory power based on F-statistics. In conclusion, the thesis contributes to the understanding of the alternative energy sector's financial performance in response to oil price movements by adding a tangible measure of financial performance to existing literature that primarily focuses on green stock performance.
Date of Award25 Jan 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorGeraldo Cerqueiro (Supervisor)


  • Green finance
  • Oil price volatility
  • Alternative energy companies
  • Profitability
  • Fixed effect regression


  • Mestrado em Finanças

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