Linkage Between Energy and Financial Markets

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Energy and Environment: Economics, Finance and Policy".

Deadline for manuscript submissions: 20 December 2025 | Viewed by 437

Special Issue Editor


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Guest Editor
Department of International Commerce, Faculty of Economics and Commerce, Keimyung University, Daegu 42601, Republic of Korea
Interests: energy economics and policy analysis; behavioral and experimental economics; international finance and business

Special Issue Information

Dear Colleagues,

The intricate linkage between energy markets and financial markets has become increasingly critical in a world facing heightened volatility, geopolitical tensions, and the accelerating transition toward sustainable energy. Shocks in energy markets—whether due to supply disruptions, policy changes, or technological shifts—often reverberate across financial systems, influencing asset prices, risk perceptions, and investment strategies. Understanding how risks are transmitted between these markets, and how they can be effectively hedged, is essential for informed decision-making.

This Special Issue aims to bring together cutting-edge research that explores the dynamic interactions between energy markets (i.e., fossil fuels, renewables, electricity, minerals, etc.) and financial markets (i.e., stocks, bonds, forex, and cryptocurrency), with a focus on risk transmission, spillover effects, and innovative risk-hedging strategies. The topic is timely and highly relevant not only for academic researchers but also for practitioners managing portfolios exposed to energy and financial risks, and for policymakers seeking to enhance market stability and resilience. We welcome empirical and theoretical contributions that provide new insights into these complex interdependencies and support the development of more robust financial systems in the face of energy-related shocks.

Prof. Dr. Sunghee Choi
Guest Editor

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Keywords

  • energy markets
  • financial markets
  • risk transmission
  • hedging strategies
  • market linkages
  • volatility spillovers
  • international finance
  • corporate finance

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Published Papers (1 paper)

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Research

19 pages, 790 KiB  
Article
How Does the Power Generation Mix Affect the Market Value of US Energy Companies?
by Silvia Bressan
J. Risk Financial Manag. 2025, 18(8), 437; https://doi.org/10.3390/jrfm18080437 - 6 Aug 2025
Viewed by 334
Abstract
To remain competitive in the decarbonization process of the economy worldwide, energy companies must preserve their market value to attract new investors and remain resilient throughout the transition to net zero. This article examines the market value of US energy companies during the [...] Read more.
To remain competitive in the decarbonization process of the economy worldwide, energy companies must preserve their market value to attract new investors and remain resilient throughout the transition to net zero. This article examines the market value of US energy companies during the period 2012–2024 in relation to their power generation mix. Panel regression analyses reveal that Tobin’s q and price-to-book ratios increase significantly for solar and wind power, while they experience moderate increases for natural gas power. In contrast, Tobin’s q and price-to-book ratios decline for nuclear and coal power. Furthermore, accounting-based profitability, measured by the return on assets (ROA), does not show significant variation with any type of power generation. The findings suggest that market investors prefer solar, wind, and natural gas power generation, thereby attributing greater value (that is, demanding lower risk compensation) to green companies compared to traditional ones. These insights provide guidance to executives, investors, and policy makers on how the power generation mix can influence strategic decisions in the energy sector. Full article
(This article belongs to the Special Issue Linkage Between Energy and Financial Markets)
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