caa a22 4500 469076003 CHVBK 20180323132935.0 cr unu---uuuuu 170328e19920601xx s 000 0 eng 10.1007/BF00157161 doi (NATIONALLICENCE)springer-10.1007/BF00157161 Riddick Leigh The American University Kogod College of Business Administration, 4400 Massachusetts Avenue, NW, 20016-8044, Washington, DC aut The effects of regulation on stochastic systematic risk [Elektronische Daten] [Leigh Riddick] There is recent evidence that systematic risk measures for most firms are stochastic, and that non-stationarity in systematic risk characteristics for regulated firms is related to the presence of regulation. Prior empirical evidence, which suggests that regulation reduces risk, did not incorporate the stochastic nature of the risk/return relationship. There are also problems with the modeling of regulation in this earlier work, and there is evidence that regulated firms may have recently grown riskier. These issues are addressed here by examining a stochastic model that structurally incorporates regulation. Differences in the risk structure of regulated and unregulated firms are identified. Analytic results, simulation results, and actual empirical estimates provide evidence that regulation reduces, but does not eliminate, stochastic systematic risk. The actual empirical results suggest that regulators do reduce stochastic systematic risk, which should lead to lower required rates of return for utilities. Kluwer Academic Publishers, 1992 Journal of Regulatory Economics Kluwer Academic Publishers 4/2(1992-06-01), 139-157 0922-680X 4:2<139 1992 4 11149 https://doi.org/10.1007/BF00157161 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00157161 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Riddick Leigh The American University Kogod College of Business Administration, 4400 Massachusetts Avenue, NW, 20016-8044, Washington, DC aut NATIONALLICENCE 773 0- Journal of Regulatory Economics Kluwer Academic Publishers 4/2(1992-06-01), 139-157 0922-680X 4:2<139 1992 4 11149 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer