regulatory climate


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Regulatory Climate

A legal situation describing the extent to which government regulations enhance or impede earnings growth. The term is used most often in the utilities industry, which must receive government approval for increases in the prices of its products. Generally speaking, the business world favors a regulatory climate with as little government oversight as possible, as this usually enables higher profits. Critics allege, however, that this sort of regulatory climate encourages unsustainable growth and/or harms the poorer segments of society. See also: Deregulation.

regulatory climate

The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. A favorable regulatory climate generally causes investors to value a company more highly because they expect its earnings to be greater.
References in periodicals archive ?
Likewise, it is extremely unfair that because of the uncertain regulatory climate, the depositors of Home Savings were not allowed to receive the facts relating to this proposal and make their own decision.
In addition, the order creates a more competitive, market-driven operating and regulatory climate for pipelines.
New York City, with its history as a strict regulatory climate, may become "ground zero" for the first strike against a problem that, according to the American Lung Association, costs an estimated $100 billion annually in medical claims and lost productivity.
exchange rate fluctuations, changes in the foreign import tariffs and monetary policies, and other changes in the regulatory climate in the foreign countries in which Applica buys, operates and/or sell products;
Established in 1965, NGSA encourages expanded use of natural gas and a regulatory climate that fosters competitive markets.
A more reasonable regulatory climate, as well as some increased SBA funding, could bring supply and demand back into balance," Gossett said.
However, intensifying competition and the strict regulatory climate in the pharmaceuticals industry pose a strong challenge.
We will see higher video-over-fiber take-rates in regions such as North America and Western Europe, particularly Scandinavia, where the regulatory climate is more favorable," forecasts Arden.
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