A Research Methodology To Measure The Profitability Of Regulated Public Utilities

Abstract

The study focuses on examining the impact of regulatory climate, among other things, upon the regulated firms profitability measurement and development of a statistical analyses and procedures to measure correctly such regulatory impact. The discussion of analytical results was grouped into three clusters to include comparison between deregulated and regulated industry. The clearest finding was profit margins declined when an industry was deregulated, and other element of the theory, such as changes in asset turnover rate and equity multiplier were not supported by the results.