Energy companies and sizes: An opportunity? Some empirical evidences

The wave of privatization and liberalization that since 1999 has characterized the European energy market has radically transformed the energy sector. The European Directives have allowed the entry of a plurality of new operators alongside the former monopolist. In this sense, the paper will pose two research questions: are there differences or similarities between the financial performance of large companies and those of small and mediumsized energy companies? What are the main reasons for such analogies? At this aim the analysis of the main financial ratios, a descriptive statistics analysis and ANOVA (one-way) have been used. The financial structure has been assessed using different ratios: quick ratio, debt to equity ratio, asset turnover ratio, ROS, ROA and ROE. The findings show that the size of energy suppliers do not significantly affect the performance of energy companies. Moreover, these factors do not produce statistically significant differences in the financial structure of energy companies. The main policy implication of the paper is the description and analysis of the performances of energy companies in a country regarding size may stimulate the entry of additional operators into the market, increasing competition and improving the service offered, which are the main objectives of the liberalization processes.