Capital structure theories and the determinants of capital structure in the European Electricity Sector - A study of dominant incumbents

Abstract

Structural and institutional changes in the European power markets create new rules of business in which dominant players have to compete. In this new era vertically integrated and quasi-integrated power companies need to utilize the complete strategic toolbox in order to react or prevent the movements of market competitors, fulfil the demands of customers, manage the different sources and effects of special risks and uncertainties, which all effects. The aim of this article is to highlight how capital structure theories enforced in the case of electricity companies.