Abstract

This paper empirically analyses the effects of regulatory reform and new ownership and control patterns on firm-level investments. The sample includes European telecommunication incumbents in the period 1995-2003. When privatization and corporate restructuring programs are taken into account, market structure and regulation result to have a mixed or not significant role. State-owned enterprises are estimated to invest more in their networks due to a looser governance; firms that have been privatized through public offering invest comparatively less, unless managers enjoy some degree of discretion.