Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model.

Investments in alternative energy stocks have gained momentum in recent years given the greater public awareness of climate change brought on by increasing energy generation and depletion of fossil fuel resources. Our study finds that alternative energy investments result in significant superior ret...

Full description

Saved in:
Bibliographic Details
Main Authors: Sim, Sze Xiong., Teo, Cheng Wei., Yeo, Alvin Yong Cheng.
Other Authors: Leon Chuen Hwa
Format: Final Year Project
Language:English
Published: 2011
Subjects:
Online Access:http://hdl.handle.net/10356/44177
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Nanyang Technological University
Language: English
id sg-ntu-dr.10356-44177
record_format dspace
spelling sg-ntu-dr.10356-441772023-05-19T05:45:02Z Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model. Sim, Sze Xiong. Teo, Cheng Wei. Yeo, Alvin Yong Cheng. Leon Chuen Hwa Nanyang Business School DRNTU::Business::Finance::Investments Investments in alternative energy stocks have gained momentum in recent years given the greater public awareness of climate change brought on by increasing energy generation and depletion of fossil fuel resources. Our study finds that alternative energy investments result in significant superior returns as compared to that of the global stock market. In addition, we show that financial metrics such as beta, market capitalization and Price-to-Book ratio together with Market-to-Reinvestment ratio explains the superior returns of alternative energy stocks. This suggests the Market-to-Reinvestment ratio (defined as stock market capitalization divided by the sum of Capex and R&D expenditure) is a suitable proxy for investors’ and management’s confidence in reinvestment commitment made by alternative energy firms in maximising shareholder value. 2011-05-27T06:11:25Z 2011-05-27T06:11:25Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/44177 en Nanyang Technological University 48 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Finance::Investments
spellingShingle DRNTU::Business::Finance::Investments
Sim, Sze Xiong.
Teo, Cheng Wei.
Yeo, Alvin Yong Cheng.
Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model.
description Investments in alternative energy stocks have gained momentum in recent years given the greater public awareness of climate change brought on by increasing energy generation and depletion of fossil fuel resources. Our study finds that alternative energy investments result in significant superior returns as compared to that of the global stock market. In addition, we show that financial metrics such as beta, market capitalization and Price-to-Book ratio together with Market-to-Reinvestment ratio explains the superior returns of alternative energy stocks. This suggests the Market-to-Reinvestment ratio (defined as stock market capitalization divided by the sum of Capex and R&D expenditure) is a suitable proxy for investors’ and management’s confidence in reinvestment commitment made by alternative energy firms in maximising shareholder value.
author2 Leon Chuen Hwa
author_facet Leon Chuen Hwa
Sim, Sze Xiong.
Teo, Cheng Wei.
Yeo, Alvin Yong Cheng.
format Final Year Project
author Sim, Sze Xiong.
Teo, Cheng Wei.
Yeo, Alvin Yong Cheng.
author_sort Sim, Sze Xiong.
title Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model.
title_short Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model.
title_full Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model.
title_fullStr Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model.
title_full_unstemmed Explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-French model.
title_sort explaining superior returns in alternative energy investments using market-to-reinvestment ratio in an augmented fama-french model.
publishDate 2011
url http://hdl.handle.net/10356/44177
_version_ 1770565143840686080