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regulation for utilities firms has made the task of setting an adequate cost of equity more difficult. Firstly, Legal Unbundling … regulation schemes has reinforced the importance of setting the equity return adequately. The approaches chosen by regulatory …
Persistent link: https://www.econbiz.de/10010426697
regulation for utilities firms has made the task of setting an adequate cost of equity more difficult. Firstly, Legal Unbundling … regulation schemes has reinforced the importance of setting the equity return adequately. The approaches chosen by regulatory …
Persistent link: https://www.econbiz.de/10010420948
With the introduction of incentive regulation in many network industries, different approaches how to remunerate … invested capital have been used. Under incentive regulation, many regulators remunerate the regulated asset base with a ….e. finding the right balance between equity financing and debt. Taggert (1981) shows that rate-of-return regulation creates an …
Persistent link: https://www.econbiz.de/10010430806
With the introduction of incentive regulation in many network industries, different approaches how to remunerate … invested capital have been used. Under incentive regulation, many regulators remunerate the regulated asset base with a ….e. finding the right balance between equity financing and debt. Taggert (1981) shows that rate-of-return regulation creates an …
Persistent link: https://www.econbiz.de/10010420952
Central banks and supervisory authorities regularly conduct stress tests of banks. As losses accumulate in stress scenarios, banks' equity position worsens, and they must pay higher interest rates to retain funding. I explore how variations of Merton-type models can be used to measure bank risk,...
Persistent link: https://www.econbiz.de/10011614070
regulation. The firm's capital structure is shown to have a significant effect on regulated prices, so that the firm's choice of …
Persistent link: https://www.econbiz.de/10012235757
An increasing fraction of firms worldwide operate in multiple countries. We study the costs and benefits of being multinational in firms' corporate financial decisions and survey the related academic evidence. We document that, among U.S. publicly traded firms, the prevalence of multinationals...
Persistent link: https://www.econbiz.de/10012168946
This paper examines the impact of the deregulation of compulsory industrial licensing in India on firm size dynamics and reallocation of resources within industries. Following deregulation, resource misallocation declines and the left-hand tail of the firm size distribution thickens...
Persistent link: https://www.econbiz.de/10009678208
An important question in banking is how strict supervision affects bank lending and in turn local business activity. Supervisors forcing banks to recognize losses could choke off lending and amplify local economic woes. But stricter supervision could also change how banks assess and manage...
Persistent link: https://www.econbiz.de/10012668203
We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...
Persistent link: https://www.econbiz.de/10011623466