Facebook LinkedIn Twitter

IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

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

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.

Purchase ( $25 )

Energy Specializations: Energy Investment and Finance – Corporate Strategy; Electricity – Policy and Regulation

JEL Codes:
D92 - Intertemporal Firm Choice: Investment, Capacity, and Financing
E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General

Keywords: Rate of return attrition, Public utility stocks, Corporate investment policy, Regulation induced inflation penalties

DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No4-6

Published in Volume 5, Number 4 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.