IDEAS home Printed from https://ideas.repec.org/a/ura/ecregj/v1y2018i1p190-201.html
   My bibliography  Save this article

Methods for the Evaluation of the Competitiveness of Energy Companies

Author

Listed:
  • Galina Chebotareva

    (FSAEI HE «Ural Federal University named after the first President of Russia B.N.Yeltsin», Academic department of energy and industrial enterprises management systems)

Abstract

The strategic tasks of energy companies are impossible to achieve without reducing the risks of companies’ development because it is an element of increasing the companies’ competitiveness. The article is devoted to the evaluation of the competitiveness of Ural energy companies. For further deterministic evaluation, the author introduces the interpretation of competitiveness as the sum of development risks of an energy company. The article presents a comprehensive assessment of the competitiveness of an energy company on the basis of the proposed methodological approach. This approach includes the assessment and ranking of energy company’s risks, the comparative analysis of real and threshold values of the overall risk of investment project implemented by a company. I tested the method of scenario analysis. The main criterion of this method is the consumers demand on energy resources. I applied the theory of economic capital as an auxiliary instrument. Risks’ rating construction is one of the most significant results of the method’s approbation. On the basis of the calculated indicators of the overall risk, I have developed a map of competitiveness. This map allows assessing the twelve cases of company’s competitiveness depending on different development scenarios and types of economic capital. The practical value of this map lies in the possibility to conduct a comparative assessment of overall risk. Furthermore, I have calculated the monetary equivalent of overall risk in each of twelve competitiveness states. The comparative assessment along with the monetary equivalent of overall risk allow making reasonable administrative decisions on the development of the most effective programs of risk management. The obtained results have theoretical and practical importance and can be used firstly in the development of a methodology for assessing competition in the national and global energy markets. Secondly, these results can be useful for the development and improvement the effectiveness of risk management in energy companies. Further research can focus on developing a specific approach for the assessment of the actual economic capital of an energy company, specifying an indicator of economic losses in a case of default, etc.

Suggested Citation

  • Galina Chebotareva, 2018. "Methods for the Evaluation of the Competitiveness of Energy Companies," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 190-201.
    • Handle: RePEc:ura:ecregj:v:1:y:2018:i:1:p:190-201
    as

    Download full text from publisher

    File URL: http://economyofregion.ru/Data/Issues/ER2018/March_2018/ERMarch2018_190_201.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Glynn John, S. & Lakshmanan, T., 2017. "Cost optimization of dish solar concentrators for improved scalability decisions," Renewable Energy, Elsevier, vol. 114(PB), pages 600-613.
    2. Hdidouan, Daniel & Staffell, Iain, 2017. "The impact of climate change on the levelised cost of wind energy," Renewable Energy, Elsevier, vol. 101(C), pages 575-592.
    3. Merton, Robert C, 1974. "On the Pricing of Corporate Debt: The Risk Structure of Interest Rates," Journal of Finance, American Finance Association, vol. 29(2), pages 449-470, May.
    4. Ghoddusi, Hamed, 2017. "Price risks for biofuel producers in a deregulated market," Renewable Energy, Elsevier, vol. 114(PB), pages 394-407.
    5. Daniilidis, Alexandros & Alpsoy, Betül & Herber, Rien, 2017. "Impact of technical and economic uncertainties on the economic performance of a deep geothermal heat system," Renewable Energy, Elsevier, vol. 114(PB), pages 805-816.
    6. Jos� I. Mu�oz & Derek W. Bunn, 2013. "Investment risk and return under renewable decarbonization of a power market," Climate Policy, Taylor & Francis Journals, vol. 13(sup01), pages 87-105, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Galina S. CHEBOTAREVA & Wadim STRIELKOWSKI & Viktor A. BLAGININ, 2019. "The renewable energy market: Companies’ development and profitability," Upravlenets, Ural State University of Economics, vol. 10(3), pages 58-69, July.
    2. Gady Jacoby & Chuan Liao & Jonathan A. Batten, 2007. "A Pure Test for the Elasticity of Yield Spreads," The Institute for International Integration Studies Discussion Paper Series iiisdp195, IIIS.
    3. ilya, gikhman, 2006. "Fixed-income instrument pricing," MPRA Paper 1449, University Library of Munich, Germany.
    4. Gordian Rättich & Kim Clark & Evi Hartmann, 2011. "Performance measurement and antecedents of early internationalizing firms: A systematic assessment," Working Papers 0031, College of Business, University of Texas at San Antonio.
    5. Gerardo Manzo & Antonio Picca, 2020. "The Impact of Sovereign Shocks," Management Science, INFORMS, vol. 66(7), pages 3113-3132, July.
    6. Christophe Hurlin & Jérémy Leymarie & Antoine Patin, 2018. "Loss functions for LGD model comparison," Working Papers halshs-01516147, HAL.
    7. Neus, Werner, 2014. "Eigenkapitalnormen, Boni und Risikoanreize in Banken," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(2), pages 92-107.
    8. Giordani, Paolo & Jacobson, Tor & Schedvin, Erik von & Villani, Mattias, 2014. "Taking the Twists into Account: Predicting Firm Bankruptcy Risk with Splines of Financial Ratios," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 49(4), pages 1071-1099, August.
    9. Ulrike Malmendier & Vincenzo Pezone & Hui Zheng, 2023. "Managerial Duties and Managerial Biases," Management Science, INFORMS, vol. 69(6), pages 3174-3201, June.
    10. Wei, Yu & Wang, Yizhi & Vigne, Samuel A. & Ma, Zhenyu, 2023. "Alarming contagion effects: The dangerous ripple effect of extreme price spillovers across crude oil, carbon emission allowance, and agriculture futures markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    11. Lily Y. Liu, 2017. "Estimating Loss Given Default from CDS under Weak Identification," Supervisory Research and Analysis Working Papers RPA 17-1, Federal Reserve Bank of Boston.
    12. Kern, Markus & Rudolph, Bernd, 2001. "Comparative analysis of alternative credit risk models: An application on German middle market loan portfolios," CFS Working Paper Series 2001/03, Center for Financial Studies (CFS).
    13. Jeremy Leake, 2003. "Credit spreads on sterling corporate bonds and the term structure of UK interest rates," Bank of England working papers 202, Bank of England.
    14. Xin Huang & Hao Zhou & Haibin Zhu, 2012. "Systemic Risk Contributions," Journal of Financial Services Research, Springer;Western Finance Association, vol. 42(1), pages 55-83, October.
    15. Milne, Alistair, 2014. "Distance to default and the financial crisis," Journal of Financial Stability, Elsevier, vol. 12(C), pages 26-36.
    16. Boulanouar, Zakaria & Alqahtani, Faisal & Hamdi, Besma, 2021. "Bank ownership, institutional quality and financial stability: evidence from the GCC region," Pacific-Basin Finance Journal, Elsevier, vol. 66(C).
    17. Richardson, Grant & Taylor, Grantley & Lanis, Roman, 2015. "The impact of financial distress on corporate tax avoidance spanning the global financial crisis: Evidence from Australia," Economic Modelling, Elsevier, vol. 44(C), pages 44-53.
    18. Zhijian (James) Huang & Yuchen Luo, 2016. "Revisiting Structural Modeling of Credit Risk—Evidence from the Credit Default Swap (CDS) Market," JRFM, MDPI, vol. 9(2), pages 1-20, May.
    19. Masahiko Egami & Rusudan Kevkhishvili, 2020. "Time reversal and last passage time of diffusions with applications to credit risk management," Finance and Stochastics, Springer, vol. 24(3), pages 795-825, July.
    20. Pesaran, M. Hashem & Schuermann, Til & Treutler, Bjorn-Jakob & Weiner, Scott M., 2006. "Macroeconomic Dynamics and Credit Risk: A Global Perspective," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(5), pages 1211-1261, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ura:ecregj:v:1:y:2018:i:1:p:190-201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Naydenov (email available below). General contact details of provider: http://www.economyofregion.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.