A Taxa de Remuneração do Capital e a Nova Regulação das Telecomunicações
AbstractAn adequate rate of return on capital yielded by the regulated firms is a central issuerelated to the new cost-based approach adopted by the Brazilian TelecommunicationRegulatory Agency (Anatel). In this context, careful attention must be given to theWeighted Average Cost of Capital (WACC) estimation. Downside bias can harminnovation and infrastructure future investment decisions and upside bias contradictsthe government main directive to reduce tariffs and foster competition, in fact, bothmistakes reduces social welfare.In this respect, the article intends to offer methodological insights, based onwell-accepted theoretical achievements and best practices abroad, for the task ofestimate a telecom WACC taking account of specific regulatory and sectorialBrazilian characteristics.
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Bibliographic InfoPaper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1160.
Length: 45 pages
Date of creation: Feb 2006
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Other versions of this item:
- Bragança, Gabriel & Rocha, Katia & Camacho, Fernando, 2006.
"A taxa de remuneração do capital e a nova regulação das telecomunicações
[Cost of capital and the new regulation of telecommunications services]," MPRA Paper 5400, University Library of Munich, Germany.
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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