IDEAS home Printed from https://ideas.repec.org/a/bla/finrev/v27y1992i3p431-65.html
   My bibliography  Save this article

The Choice among Long-Term Financing Instruments for Public Utilities

Author

Listed:
  • Chen, Chao
  • Fanara, Philip, Jr

Abstract

This study examines the decision of regulated utilities to raise new financing via common stock, debt, or preferred stock offerings. The authors develop several logit models to test how a set of relevant variables affects the issuing choice. These variables include the level of insider ownership, regulatory climates, measures of aggregate market conditions, bankruptcy risk, deviations from the long- and short-term target ratios, asset composition, etc.. In addition, this paper tests whether the cross-sectional level of debt ratio is related to some of these same factors. Their findings indicate that U.S. electric utilities are not influenced by market timing when making a choice among long-term financing instruments. However, their results do show that ownership structure variables, such as the number of directors and officers, seem to have a significant negative influence upon the choice of common stock, thus lending support to I. Friend and L. Lang's (1988) finding. In addition, capital structure seems to matter for utilities. Copyright 1992 by MIT Press.

Suggested Citation

  • Chen, Chao & Fanara, Philip, Jr, 1992. "The Choice among Long-Term Financing Instruments for Public Utilities," The Financial Review, Eastern Finance Association, vol. 27(3), pages 431-465, August.
    • Handle: RePEc:bla:finrev:v:27:y:1992:i:3:p:431-65
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sanyal, Paroma & Bulan, Laarni T., 2011. "Regulatory risk, market uncertainties, and firm financing choices: Evidence from U.S. Electricity Market Restructuring," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(3), pages 248-268, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:finrev:v:27:y:1992:i:3:p:431-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/efaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.