Faculty Publications


The effect of corporate strategy and regulation on the risk of electric utilities.

SelectedWorks Author Profiles:

Scott Geiger

Document Type


Publication Date


Date Issued

January 2001

Date Available

November 2011


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.


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.




3-R Executive Systems