Impact of risk factors on market value of companies from Polish renewable energy sector in changing regulatory environment

The paper aims to assess the impact of change of law regulations concerning renewable energy market on equity value and risk of renewable energy producers listed on Warsaw Stock Exchange. We analyze several risk factors in the period of 2012-2016 in comparison with previous findings from 2012. Among others we analyze company size, shareholders structure, liquidity and systematic risk. Using standard market risk measures we observe that the sector continuously may be described as defensive. Small sample of companies operating in this sector makes the statistical hypothesis testing difficult. Recently on Polish market new auction system was introduced replacing green certificate support mechanism. In our study we want to verify whether it increases the exposure to firm's specific risks. Results show that risk of well-diversified, large investors faces minor changes that are statistically insignificant. While for small, undiversified investors beta is decreasing.