Financing Corporate Growth in the Renewable Energy Industry

This analysis focuses on financing constraints in the Renewable Energy Industry. It includes a literature review on funding gaps, investigates market timing in seasoned equity offerings, analyzes convertible debt structures, and examines the market impact of business combinations in the industry.

Financing constraints have been central to the political and economic debate about renewable energy development. This book addresses four related corporate finance questions. The first chapter reviews theoretical considerations and empirical evidence on so-called funding gaps. Chapters two and three analyze the genuine structures of equity and convertible debt offerings in the industry. The final part investigates to what extent business combinations are perceived as a valuable means to company growth. The analysis contains a variety of empirical findings that are novel to existing emerging industry and corporate finance research. It shows that many investors perceive the level of asymmetric information and regulatory risk, as well as the industry's structure, to be detrimental to renewable energy finance.

Autorentext

Christoph Ettenhuber was a research and teaching assistant at Technische Universität Darmstadt, Chair of Corporate Finance. He now works for a major automotive company.

Inhalt

Contents: Financing Constraints in the Cleantech Industry: Theory and Evidence Growth Options, Market Timing and Seasoned Equity Offerings in the Renewable Energy Industry Signaling with Convertible Debt in the Renewable Energy Industry M&A-Success in the Renewable Energy Industry.