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The regulation of the United Kingdon electricity industry: an event study of price-capping measures

Dnes, Anthony W.; Kodwani, Devendra G.; Seaton, Jonathan S. and Wood, Douglas (1998). The regulation of the United Kingdon electricity industry: an event study of price-capping measures. Journal of Regulatory Economics, 13(3) pp. 207–226.

DOI (Digital Object Identifier) Link: http://dx.doi.org/10.1023/A:1008027419553
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Abstract

The privatization of United Kingdom utilities after 1979 established a regulatory regime based around price capping rather than return capping. This innovation was intended to provide a predictable framework that encouraged efficiency. An event methodology was used to examine stock market reaction to the main regulatory announcements affecting 12 Regional Electric Companies from flotation to 1995. The results indicate that the regulatory announcements were only a minor contributor to the persistent abnormal returns observed. The low connection between regulatory events, efficiency changes and abnormal returns at company level lead to a conclusion that the initial structural and control frameworks dominated the regulatory framework.

Item Type: Journal Article
Copyright Holders: 1998 Kluwer Academic Publishers
ISSN: 1573-0468
Academic Unit/Department: Open University Business School
Item ID: 25341
Depositing User: Catherine Playle
Date Deposited: 28 Apr 2011 10:06
Last Modified: 23 Oct 2012 13:21
URI: http://oro.open.ac.uk/id/eprint/25341
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