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Rate-of-Return Attrition and Inflation-Induced Penalties in Public Utility Common Stocks

Author

Listed:
  • Wallace N. Davidson
  • John L. Glascock

Abstract

While the rate of inflation seems to be easing, the interest in its impact on corporate security prices (Feldstein, 1980) and on corporate investment policy (Caks, 1981; Higgins, 1977) has continued. Unlike nonregulated firms, utilities face the added difficulties of regulation-induced inflation penalties and return on equity (ROE) attrition.

Suggested Citation

  • Wallace N. Davidson & John L. Glascock, 1984. "Rate-of-Return Attrition and Inflation-Induced Penalties in Public Utility Common Stocks," The Energy Journal, , vol. 5(4), pages 65-72, October.
  • Handle: RePEc:sae:enejou:v:5:y:1984:i:4:p:65-72
    DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No4-6
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