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Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales

Research output: Working paper

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Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales. / Beekes, W A.
Lancaster University: The Department of Accounting and Finance, 2003. (Accounting and Finance Working Paper Series).

Research output: Working paper

Harvard

Beekes, WA 2003 'Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales' Accounting and Finance Working Paper Series, The Department of Accounting and Finance, Lancaster University.

APA

Beekes, W. A. (2003). Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales. (Accounting and Finance Working Paper Series). The Department of Accounting and Finance.

Vancouver

Beekes WA. Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales. Lancaster University: The Department of Accounting and Finance. 2003. (Accounting and Finance Working Paper Series).

Author

Beekes, W A. / Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales. Lancaster University : The Department of Accounting and Finance, 2003. (Accounting and Finance Working Paper Series).

Bibtex

@techreport{ddf82e627dfe4599b6df2aed8247e392,
title = "Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales",
abstract = "This paper examines the response of the water and electricity group companies to regulatory pressure and in particular, the first regulatory price review after privatisation. The sample period incorporates industry-specific regulatory price reviews in both the water and electricity sectors and provides an interesting case study to examine the political cost hypothesis. The results obtained in this study confirm that the regulatory process has an impact on the group company's financial reporting decisions: there is evidence of income-decreasing earnings management in the year of regulatory price review in both sectors. However there is little evidence to support the premise of income-decreasing earnings management in the electricity sector, following the regulator's decision to re-open the distribution price review in 1995.",
keywords = "Accounting accruals, earnings management, price cap regulation, regulatory review, regional electricity companies, water and sewerage companies",
author = "Beekes, {W A}",
year = "2003",
language = "English",
series = "Accounting and Finance Working Paper Series",
publisher = "The Department of Accounting and Finance",
type = "WorkingPaper",
institution = "The Department of Accounting and Finance",

}

RIS

TY - UNPB

T1 - Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales

AU - Beekes, W A

PY - 2003

Y1 - 2003

N2 - This paper examines the response of the water and electricity group companies to regulatory pressure and in particular, the first regulatory price review after privatisation. The sample period incorporates industry-specific regulatory price reviews in both the water and electricity sectors and provides an interesting case study to examine the political cost hypothesis. The results obtained in this study confirm that the regulatory process has an impact on the group company's financial reporting decisions: there is evidence of income-decreasing earnings management in the year of regulatory price review in both sectors. However there is little evidence to support the premise of income-decreasing earnings management in the electricity sector, following the regulator's decision to re-open the distribution price review in 1995.

AB - This paper examines the response of the water and electricity group companies to regulatory pressure and in particular, the first regulatory price review after privatisation. The sample period incorporates industry-specific regulatory price reviews in both the water and electricity sectors and provides an interesting case study to examine the political cost hypothesis. The results obtained in this study confirm that the regulatory process has an impact on the group company's financial reporting decisions: there is evidence of income-decreasing earnings management in the year of regulatory price review in both sectors. However there is little evidence to support the premise of income-decreasing earnings management in the electricity sector, following the regulator's decision to re-open the distribution price review in 1995.

KW - Accounting accruals

KW - earnings management

KW - price cap regulation

KW - regulatory review

KW - regional electricity companies

KW - water and sewerage companies

M3 - Working paper

T3 - Accounting and Finance Working Paper Series

BT - Earnings management in response to regulatory price review. A case study of the political cost hypothesis in the water and electricity sectors in England and Wales

PB - The Department of Accounting and Finance

CY - Lancaster University

ER -