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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2022-09-19  |  Accepted: 2022-12-08  |  Published: 2022-12-30

Title

Sustainability of electricity prices and the consequences for the Prague Stock Exchange


Abstract

Sustainability of electricity prices hold an important part of the family budget, business operational costs, and vitality of the economy. Currently, multinational corporations are considered the main users of electricity and other energy recourses. For this purpose, we analyze the sustainability of electricity price and their impact equity stocks in the PX Index. The PX Index, which originates from Prague Stock Exchange is generally composed of firms in the financial and energy sector. This paper as well tries to predict the performance of these two variables in the 12 months ahead. The data cover the period from 1995 to 2022 standing on the monthly observations. The Vector Error Correction Model was used to detect the effect that electricity prices maintain on the PX Index. The estimated forecasts were conducted in the R program using Facebook Prophet and Auto ARIMA Model. The results indicate that non-sustainability of electricity prices negatively affect the equity stocks listed on the PX Index. Regarding predictions, the PX Index is expected to stay at almost the same levels while electricity prices increase. The results provide modest indications for investors, government, and regulators on the performance of these two indicators 12 periods ahead. Additionally, it is the first attempt to analyze the relationship between electricity prices and the equity markets since the liberalization of the Czech economy.


Keywords

electricity prices, equity stocks, PX index, VEC model, Facebook Prophet, Auto ARIMA


JEL classifications

G15 , G17


URI

http://jssidoi.org/jesi/article/1038


DOI


Pages

473-494


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Aliu, Florin
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Hašková, Simona
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Šuleř, Petr
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

10


Number

2


Issue date

December 2022


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 886  |  PDF downloads: 463

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