USF St. Petersburg campus Faculty Publications
The effect of corporate strategy and regulation on the risk of electric utilities.
Document Type
Article
Publication Date
2001
Abstract
Very little is known about the influences of corporate strategy and regulation on the risk of regulated firms. The current study addresses this gap by examining the relationship among the level of diversification, the regulatory environment, and risk levels of regulated electric utility companies. Results suggest that both the regulatory environment and level of diversification impact firm risk. Specifically, the regulatory environment in which a firm operates moderates the relationship between diversification and risk. Electric utilities operating in the least favorable regulatory environments benefited the most from diversification in terms of risk reduction, while electric utilities in the most favorable regulatory environments experienced increases in risk from diversification. These findings extend previous studies by showing how both the regulatory environment and corporate strategy impact the risk of regulated utilities.
Language
en_US
Publisher
3-R Executive Systems
Recommended Citation
Geiger, S.W., Rasheed, H., Hoffman, J.J. & Williams, R.J. (2001). The effect of corporate strategy and regulation on the risk of electric utilities. International Journal of Organizational Analysis, 9(2), 172-186.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Comments
Abstract only. Full-text article is available only through licensed access provided by the publisher. Published in International Journal of Organizational Analysis, 9(2), 172-186. Members of the USF System may access the full-text of the article through the authenticated link provided.