✦ LIBER ✦

Cross-sectional analysis of utility returns: regulatory and investor implications

✍ Scribed by E. Tylor Claggett Jr.; R. Charles Moyer

Publisher: Elsevier Science
Year: 1997
Tongue: English
Weight: 801 KB
Volume: 10
Category: Article
ISSN: 1040-6190
DOI: 10.1016/s1040-6190(97)80350-8

No coin nor oath required. For personal study only.

✦ Synopsis

Cross-Sectional Analysis of Utility Returns: Regulatory and Investor Implications

What is the spread between expected and required returns on common equity for electric and combination electric and gas distribution utilities, using the market-to-book value ratio? We find that the M/B ratio is negatively associated with such factors as the level of long-term interest rates, and positively associated with the earned return on common equity and operation in a favorable regulatory climate.

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