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Author: Ian Alexander
Publisher: World Bank Publications
ISBN:
Category : Capital costs
Languages : en
Pages : 22
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Book Description
A methodology for measuring the cost of capital, calculating the measure of market risk, and estimating the impact of various regulatory regimes on market risk in the transport sector.
Author: Ian Alexander
Publisher: World Bank Publications
ISBN:
Category : Capital costs
Languages : en
Pages : 22
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Book Description
A methodology for measuring the cost of capital, calculating the measure of market risk, and estimating the impact of various regulatory regimes on market risk in the transport sector.
Author: Ian Alexander
Publisher:
ISBN:
Category :
Languages : en
Pages : 17
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Book Description
A methodology for measuring the cost of capital, calculating the measure of market risk, and estimating the impact of various regulatory regimes on market risk in the transport sector.In reviewing contracts, establishing price limits, or arbitrating conflicts, regulatory agencies and policy advisors face significant information asymmetry in determining the appropriate allowed rate of return, or discount rate. The information gap is especially important in determining the degree of market risk - often a critical component of the cost of capital demanded by operators.Alexander, Estache, and Oliveri consider various methodological problems in the transport sector in establishing the link between regulatory regime and degree of market risk. The results of quantitative studies confirm that even for the transport sector - where there is intermodal competition and where contracts are often shorter and regulatory decisions may be less pressing than for utilities - the choice of regulatory regime greatly affects the degree of market risk a company faces. This has important implications for regulatory agencies and actions.When a regulatory agency undertakes a price review, or when issues arise about concession contracts, it is important that regulators assess correctly the required rate of return and cost of capital. They must also assess correctly the level of risk, which affects the required rate of return and the cost of capital.Most regulators in developing countries have a problem: The regulated companies are unquoted or undertake many activities for a range of industries and even sectors. For them this methodology for measuring the cost of capital, calculating the measure of market risk, and estimating the impact of various regulatory regimes on market risk may be useful.This paper - a product of Governance, Regulation, and Finance, World Bank Institute - is part of a larger effort in the institute to increase understanding of infrastructure regulation.
Author: Sascha Heller
Publisher: diplom.de
ISBN: 3842812809
Category : Technology & Engineering
Languages : en
Pages : 67
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Book Description
Inhaltsangabe:Introduction: Estimating the cost of equity capital has two major implications. First, it reflects the return to a company s stock which an equity investor expects to receive from his investment. He makes his decision upon whether he could earn a higher rate of return in an alternative investment of equivalent risk. Second, a company must earn the cost of capital (both debt and equity) through its undertaken projects. It is hence relevant for decisions on undertaking positive net present value projects which are of similar risk as the company s average business activities. It also substantially influences the pricing of an entire firm as far as the valuation is based on a discounted cash flow model. A lot of effort has been done in the past to achieve accurate models which precisely determine this cost. Building on the modern portfolio theory of Harry Markowitz, a widely used and commonly known model in this context is the Capital Asset Pricing Model (CAPM). Introduced by several researchers in the 1960s, it is still one of the most applied methods for practitioners. However, it suffers from several shortcomings, including statistical caveats, economic assumptions, the absence of market frictions and the behaviour of market participants. An upgrade to this model was provided by Stephen Ross which has resulted in the Arbitrage Pricing Theory (APT). It combines several risk factors in addition to one market proxy, as it is the case in the CAPM, and is less restrictive in its assumptions. But both CAPM and APT require observable market data, i.e. stock prices, of the analysed companies. These models thus only work for publicly listed firms. If research should be done on non-traded companies, however, an alternative methodology must be applied. In general, data from the balance sheet, the income statement and the cash flow statement are available for both listed and non-listed companies. While accounting data have widely been used in the past as well and have been assumed to provide valuable information in explaining stock returns, this line of research has dissipated over time. Only a few key figures, such as size and financial leverage, are still considered to be relevant. However, they can be used to indirectly estimate a firm s beta by assessing their explanatory power in a CAPM or APT framework. This methodology is particularly beneficial for firms which are not listed because there cannot be observed any stock price movements. [...]
Author: Azmi YALÇIN
Publisher: Akademisyen Kitabevi
ISBN: 6052580542
Category : Political Science
Languages : en
Pages : 37
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Book Description
Author: Lourdes Trujillo
Publisher: World Bank Publications
ISBN:
Category : Demand (Economic theory)
Languages : en
Pages : 42
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Book Description
This overview of issues that regulators should be aware of in demand forecasting discusses challenges that come with the decision to privatize transport, the perverse incentives introduced when privatization teams use strategic demand forecasts to evaluate assets, the most common problems with demand forecasting, the reasons that demand forecasting matters, and how to think about demand forecasting in the context of regulation.
Author:
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 24
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Book Description
Author: Margaret Arblaster
Publisher: Elsevier
ISBN: 0128111194
Category : Transportation
Languages : en
Pages : 286
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Book Description
Air Traffic Management: Economics Regulation and Governance provides the latest insights on approaches and issues surrounding the economic regulation and governance of air traffic management (ATM). The book begins by explaining what ATM is, showing its importance within the aviation industry. It then outlines the unique institutional characteristics that govern ATM, also discussing its implications for economic regulation and investment. Technological developments and the issues and approaches to safety regulation are also covered, as are the implications ATM has on airports. The book concludes with an exploration of future directions, including the entry of drones into airspace and the introduction of competition in ATM services Air traffic management plays a critical role in air transport, impacting both air safety and the efficiency of air services. Yet air navigation services are shifting from government provision to private industry, creating the need for more critical analysis of governance and economic regulation within the ATM industry. Consolidates the latest economic regulation and reform material regarding air traffic management Provides numerous practical examples and real-world case studies drawn from around the globe Explores economic regulation in both larger and smaller economies Written from an objective, informed and practical perspective by an experienced regulation practitioner and researcher
Author: Luis Correia Da Silva, Sakari Järvelä, Antonio Estache
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 22
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Book Description
Author: Akintola Akintoye
Publisher: John Wiley & Sons
ISBN: 0470680431
Category : Technology & Engineering
Languages : en
Pages : 448
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Book Description
Public Private Partnership is a key issue in the construction industry – causing much concern among contractors, funders and facility managers. Demand has been building for a thorough analysis ... This edited book will familiarise both researchers and construction professionals working with public private partnerships (PPP) with the issues involved in the planning, implementation and day-to-day management of public private projects. It will show how current risk management methods can help the complex process of managing procurement via such partnerships. The chapters - most authored by a practitioner/academic partnership - are organised round the concepts of best value and use the findings of a major research project investigating Risk Assessment and Management in Private Finance Initiative Projects. The analysis of this research will be supplemented with contributions by leading international experts from Hong Kong, Australia and Singapore, covering hospitals, schools, waste management and housing - to exemplify best practice in PPP-based procurement.
Author: Emmanuelle Auriol
Publisher: Cambridge University Press
ISBN: 1108996329
Category : Business & Economics
Languages : en
Pages : 455
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Book Description
Regulation is one of the tools used by governments to control monopolistic behaviour in the provision of public services such as electricity, transport or water. Technological and financial innovations have changed these public services markets since the 1990s, bringing new regulatory challenges, including technological and financial ones. This book demonstrates that basic regulatory theory and tools can address these new challenges, in addition to more traditional regulatory issues, both in developed and developing economies. The theory covered in the book is robust enough to guide regulators in multiple contexts, including those resulting from the effects of financial or political constraints, evolving market structures or the need to adapt to institutional weaknesses, climate change and poverty concerns that demand regulatory intervention. A bridge between theory and an evolving global practice, this book mobilizes the lessons of the past to analyse the future of economic regulation.
