Regulatory independence and political interference: evidence from EU mixed-ownership utilities' investment and debt

Arbeitspapier

This paper examines the investment and financial decisions of a sample of 92 EU regulated utilities, taking into account key institutional features of EU public utilities, such as: a) regulation by agencies with various degrees of independence; b) partial ownership of the state in the regulated firm; and c) the government's political orientation, which may ultimately influence the regulatory climate to be either more pro-firm or more pro-consumers. Our results show that regulatory independence matters for both investment and financial decisions. Investment increases under an Independent Regulatory Agency (IRA), while ownership has no effect. Leverage also increases when the IRA is in place, especially so if the regulated firm is privately controlled. Finally political orientation does matter, as firm investment increases under more conservative (pro-firm) governments, but this effect appears to revert when the IRA is in place.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Nota di Lavoro ; No. 2010,69

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Capital Budgeting; Fixed Investment and Inventory Studies; Capacity ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out ; Economics of Regulation ; Industry Studies: Transportation and Utilities: General
• Thema: Regulated Utilities ; Investment ; Capital Structure ; Private and State Ownership ; Regulatory Independence ; Government's Political Orientation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Cambini, Carlo ; Rondi, Laura
• Ereignis: Veröffentlichung
• (wer): Fondazione Eni Enrico Mattei (FEEM)
• (wo): Milano
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/43542
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ