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- W2018102730 abstract "Abstract In 1992, the regulatory environment for electric utilities changed dramatically with enactment of the Energy Policy Act, mandating increased competition in this formerly monopolistic industry. The results of our study suggest that these regulatory changes in the electric utility industry and the opening of transmission lines to outsiders had negative and significant effects on stock values for the overall sample of firms examined. The basic results indicate that the movement toward greater competition dissipates economic rents associated with the previously held monopolistic situations. Multivariate analysis indicates that firms with greater levels of nuclear assets and higher earnings per dollar of assets prior to the regulatory actions suffered greater negative abnormal returns than other firms in the sample. Additionally, firms in a more competitive environment prior to regulatory changes had less negative abnormal returns. Results also show utility firms are riskier after deregulation with an increase in market risk of 48.88% and in firm specific risk of 23.66%. Overall, it appears that, as with other deregulation of natural monopolies in the US, increased competition will benefit some producers, harm other producers and generally dissipate economic rents to consumers." @default.
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- W2018102730 date "1998-12-01" @default.
- W2018102730 modified "2023-10-06" @default.
- W2018102730 title "Regulatory changes in the electric utility industry: Investigation of effects on shareholder wealth" @default.
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- W2018102730 doi "https://doi.org/10.1016/s0278-4254(98)10013-3" @default.
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