European telecommunication regulation : effects on telecommunication providers


Veith, Tobias


[img]
Preview
PDF
dp10088.pdf - Published

Download (569kB)

URL: http://ub-madoc.bib.uni-mannheim.de/3088
URN: urn:nbn:de:bsz:180-madoc-30886
Document Type: Working paper
Year of publication: 2010
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L51 L52 L86 L96 O31 O33 ,
Subject headings (SWD): Europa , Telekommunikationspolitik , Wirkungsanalyse , Telekommunikationsindustrie , Unternehmensbewertung , Wettbewerb
Keywords (English): regulation , telecommunications , company value
Abstract: This paper considers the impact of European telecom regulation on the value of affected companies. Employing a repeating AR-GARCH model, I compare the effect of three types of regulation which are categorized based on the addressed subject, i.e. cross-market, country-specific and company-specific regulation. While standard event study approaches are a special case of ARGARCH models, the approximation process chosen in this paper shows a better estimation of the stock price development based on autoregressive models and, thus, more robust estimation results for the reaction to a regulatory change. Turning to the economic results, I find positive reactions to crossmarket and country-specific regulation and negative reactions to regulation which directly addresses individual firms. The impact on volatility supports the findings of the returns analysis. These findings show that European Commission interventions are competition enhancing and support the expected performance of the affected companies in the telecommunications sector. However, while country-addressing interventions and company-addressing interventions follow similar aims, country-addressing interventions cause more uncertainty to a market because of the national process of governments’ adjustments. Thus, the estimation results provide evidence that companies prefer direct European regulation over the implementation by national governments, independent of providers’ incumbency.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Veith, Tobias (2010) European telecommunication regulation : effects on telecommunication providers. Open Access [Working paper]
[img]
Preview


+ Search Authors in

BASE: Veith, Tobias

Google Scholar: Veith, Tobias

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item