The Profitability of Electricity, Oil, and Gas Utilities in America: An Analysis Focused on Colombia
Identifying the determining factors of utilities’ profitability is vital in making strategic deci- sions such as optimal resource allocation and business strategy orientation to increase the invested capital. We analyze information from private and public companies in the energy, gas, and oil sector...
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| Format: | Article in Journal/Newspaper |
| Language: | English |
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Universidad Militar Nueva Granada
2023
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10654/42806 https://revistas.unimilitar.edu.co/index.php/rfce/article/view/4525 https://doi.org/10.18359/rfce.4525 |
| Summary: | Identifying the determining factors of utilities’ profitability is vital in making strategic deci- sions such as optimal resource allocation and business strategy orientation to increase the invested capital. We analyze information from private and public companies in the energy, gas, and oil sectors in Colombia and other American countries. We construct a panel data model from 2000 to 2010 and propose a method that identifies the determining factors of profitability for homogeneous groups of companies using cluster analysis. We use regression analysis to quantify those factors for each cluster. Fixed assets are essential determining factors of profitability; however, investment regulation may lead to significant losses in the realizable value of fixed assets and an increase in the companies’ capital costs. Debt and a munificent environment only affect medium-sized companies. We found some benefits for large companies derived from non-transparent institutional environments. Identificar los factores determinantes de la rentabilidad de los servicios públicos es vital para tomar de- cisiones estratégicas como la asignación óptima de recursos y la orientación de la estrategia empresarial para au- mentar el capital invertido. Analizamos la información de empresas privadas y públicas en los sectores de energía, gas y petróleo en Colombia y otros países del continente Americano. Construimos un modelo de datos de panel del 2000 al 2010 y sugerimos un método para identificar los factores determinantes de la rentabilidad en grupos homogéneos de empresas mediante el análisis de grupos. Utilizamos análisis de regresión para cuantificar esos factores en cada grupo. Los activos fijos son factores determinantes esenciales de la rentabilidad; sin embargo, la regulación de las inversiones puede provocar pérdidas significativas en el valor realizable de los activos fijos y un aumento en los costos de capital de las empresas. La deuda y un entorno munificente solo afectan a las medianas empresas. Encontramos ... |
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