Utilities regulation attempts to attenuate the effects of market failure. Contemporary systems of regulation are generally either rate of return or price cap (RPI-X) systems. This paper addresses the issue of the levels of excess returns and risk inherent in investment in the equity of regulated...

This paper explores the scale and behaviour of abnormal returns observed in the equity of the 10 Water and Sewerage Companies (WASCs) in England and Wales that were formed at privatisation of the UK water industry in 1989. The paper uses the CAPM and employs techniques of the Kalman Filter to...

<Para ID="Par1">This paper addresses a core issue for the regulated utility: what are the risks taken by investors in companies that supply a product whose supply is regulated? Prior research on returns of regulated water supply and distribution companies concluded that regulation interacts significantly with...</para>

Purpose – This paper aims to draw on the potential behavioural implications of the new (economic) measurement attributes initiated recently by the International Accounting Standard Board (IASB) in their efforts to reflect more relevant, “true” underlying economic values as opposed to...