Investment and capital structure of partially private regulated firms

Yossi Spiegel and Carlo Cambini

No 8508, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We develop a model that examines the capital structure and investment decisions of regulated firms in a setting that incorporates two key institutional features of the public utilities sector in many countries: firms are partially owned by the state and regulators are not necessarily independent. Among other things, we show that firms invest more, issue more debt, and are allowed to charge higher prices when they are more privatized and when the regulator is more independent and more pro-firm.

Keywords: Regulatory climate; Regulatory independence; Government ownership; investment; Debt; Regulation (search for similar items in EconPapers)
JEL-codes: G32 L33 L51 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-cfn and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://cepr.org/publications/DP8508 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:8508

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP8508

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().