Tech firms and the renewable energy sector: Exploring the moderating effects of institutional ownership on financial connectedness

Date

2025-08-01

Author

Sirin, Selahattin Murat
Yılmaz, Berna Nisa

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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Tech firms can play a major role in advancing sustainability practices, particularly through their synergy with the renewable energy sector. However, the existing literature often overlooks firm-level dynamics and uses aggregated data to explore the connectedness between the tech and renewable energy sectors. This paper contributes to the literature by examining the moderating effects of institutional ownership on financial connectedness using firm-level data. We develop a novel dataset on firms’ renewable energy strategies with a large language model and utilize event-study and panel-data analyses to test our hypothesis. Based on data from 129 tech firms from 2011 to 2022, empirical analyses reveal that institutional ownership moderates the financial connectedness between tech firms and the renewable energy sector; however, the results indicate a threshold effect. While firms with low institutional ownership experience a higher impact on performance, performance differences among firms with higher institutional ownership are less pronounced.

Subject Keywords

Connectedness, Energy transition, Financial performance, Sustainability

URI

https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=105016802030&origin=inward
https://hdl.handle.net/11511/116548

Collections

Department of Business Administration, Article