 The Choice among Long-Term Financing Instruments for Public UtilitiesChao Chen and Fanara, Philip, The Financial Review, 1992, vol. 27, issue 3, 431-65 Abstract: This study examines the decision of regulated utilities to raise new financing via common stock, debt, or preferred stock offerings. The authors develop several logit models to test how a set of relevant variables affects the issuing choice. These variables include the level of insider ownership, regulatory climates, measures of aggregate market conditions, bankruptcy risk, deviations from the long- and short-term target ratios, asset composition, etc.. In addition, this paper tests whether the cross-sectional level of debt ratio is related to some of these same factors. Their findings indicate that U.S. electric utilities are not influenced by market timing when making a choice among long-term financing instruments. However, their results do show that ownership structure variables, such as the number of directors and officers, seem to have a significant negative influence upon the choice of common stock, thus lending support to I. Friend and L. Lang's (1988) finding. In addition, capital structure seems to matter for utilities. Copyright 1992 by MIT Press. Date: 1992 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:27:y:1992:i:3:p:431-65 Ordering information: This journal article can be ordered from Access Statistics for this article The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC. |
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