Stock-Bond Swaps in Regulated Utilities
研究受监管公用事业公司以折价债券换股票的现象，分析监管调整回报率和会计处理如何影响不同利益方的财富转移，对研究资本结构、监管政策的人有参考价值。
* The paper examines a recent phenomenon where regulated utilities exchange bonds that are selling at deep discount with common stock. Wealth transfers among ratepayers, common stockholders, preferred stockholders and remaining bondholders are affected by the regulatory commission's adjustments in allowed rate of return and rate base, and the accounting procedure used to recognize the exchange transaction. Motivation for a stock for bond exchange can come from a desire to revise financial leverage downward, to achieve possible positive tax consequences and to affect wealth transfers among different providers of capital and ratepayers. The current note examines the last possible motivation with no intention of slighting the possible major role of the first two in initiating a stock for bond exchange. The regulatory setting that determines allowed rate of return and shareholder risk differs from the risk and