Financial resilience of electricity sector companies in emerging and developed economies: a comparative analysis during times of distress

Paper Details

Authors: Joaqui-Barandica O.; Manotas-Duque D.F.; Orozco-Cerón O.W.

DOI: 10.3934/QFE.2026011

Journal: Quantitative Finance and Economics

Year: 2026

Publisher: American Institute of Mathematical Sciences

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

This study delved into the determinants of the financial performance of energy firms in both developed and prominent emerging markets, employing a comparative lens. By examining companies within the electric power generation, transmission, and distribution sectors in BRICS and G7 markets throughout the years 2018–2022, including the disruptive COVID-19 period, we leveraged the dual multiple factor analysis (DMFA) technique. Our analysis uncovered four key dimensions—asset-to-debt ratios, operational profitability, liquidity, and the interplay between growth and financial stability—providing clarity on over 65% of the sector’s financial dynamics. Our primary findings underscore discernible heterogeneity and emphasize the heightened resilience demonstrated by G7 firms, particularly during the pandemic era. The implications of these disparities carry significant economic and financial ramifications for both groups, influencing their response and recovery mechanisms in the face of disruptive shocks. © 2026 the Author(s)

Keywords

BRICS; Covid-19; electric power sector; factor analysis; financial dynamics; G7

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