IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v10y2000i2p117-121.html
   My bibliography  Save this article

Modelling the effects of regulatory discretion: Carsberg vs Spottiswoode

Author

Listed:
  • T. A. Robinson

Abstract

This paper attempts to measure the effect on financial markets of two important regulatory events in the British telecommunications and gas industries namely the 1991 Duopoly Review and the 1996 Transco Price Review. These events were chosen because it is widely believed that the individual industry regulators handled them very differently. The expected volatility of the share returns for these two companies is modelled as an ARCH representaion and it is found that the conditional variance of share returns in British Gas was higher after the Transco Price Review. The share returns of British Telecommunications exhibit a lower expected volatility. It is concluded that these results support the contention that the high level of discretion accorded to British regulators may increase the cost of capital for regulated firms.

Suggested Citation

  • T. A. Robinson, 2000. "Modelling the effects of regulatory discretion: Carsberg vs Spottiswoode," Applied Financial Economics, Taylor & Francis Journals, vol. 10(2), pages 117-121.
    • Handle: RePEc:taf:apfiec:v:10:y:2000:i:2:p:117-121
    DOI: 10.1080/096031000331743
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/096031000331743
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/096031000331743?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Antony W. Dnes & Jonathan S. Seaton, 1999. "The Regulation of British Telecom: An Event Study," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(4), pages 610-610, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gioia Pescetto, 2007. "Regulation and systematic risk: the case of the water industry in England and Wales," Applied Financial Economics, Taylor & Francis Journals, vol. 18(1), pages 61-73.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xinwen Ni & Wolfgang Karl Hardle & Taojun Xie, 2020. "A Machine Learning Based Regulatory Risk Index for Cryptocurrencies," Papers 2009.12121, arXiv.org, revised Aug 2021.
    2. Bel, Germà & Trillas, Francesc, 2005. "Privatization, corporate control and regulatory reform: the case of Telefonica," Telecommunications Policy, Elsevier, vol. 29(1), pages 25-51, February.
    3. Russell Smyth & Magnus Söderberg, 2010. "Public interest versus regulatory capture in the Swedish electricity market," Journal of Regulatory Economics, Springer, vol. 38(3), pages 292-312, December.
    4. Aristeidis G. Samitas & Dimitris F. Kenourgios, 2006. "Financing Tourist Development through Stock Capital: Evidence from the Greek Hotel Sector," Tourism Economics, , vol. 12(1), pages 87-100, March.
    5. Ni, Xinwen & Härdle, Wolfgang Karl & Xie, Taojun, 2020. "A Machine Learning Based Regulatory Risk Index for Cryptocurrencies," IRTG 1792 Discussion Papers 2020-013, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:10:y:2000:i:2:p:117-121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.