Infrastructure investment characteristics : risk, regulation, and inflation hedging ; an empirical analysis of listed infrastructure firms

This dissertation examines the investment risk profile and the inflation hedging characteristics of infrastructure investments using a global sample of listed infrastructure firms. The results challenge the conventional investor wisdom that infrastructure is generally low risk and a good inflation hedge. However, certain sectors are indeed characterized by low market risk and good inflation hedging qualities. In addition, this thesis provides empirical evidence that price regulation reduces systematic risk (confirming the Peltzman hypothesis) and highlights the relevance of regulatory independence for rendering incentive regulation effective and for mitigating regulatory uncertainty.