IDEAS home Printed from https://ideas.repec.org/a/eee/jebusi/v79y2015icp82-99.html
   My bibliography  Save this article

Firm-level conditions to engage in public-private partnerships: What can we learn?

Author

Listed:
  • Lopes, Ana Isabel
  • Teixeira Caetano, Tânia

Abstract

This research examines the firm-level conditions of Portuguese listed companies to be engaged in Public Private Partnerships - Service Concessions Arrangements (PPP/SCA). Based on accounting standards and other legislation regarding PPP/SCAs, a set of firm's characteristics was tested in order to find determinants for that engagement. Through empirical evidence it is suggested that larger firms and relative higher leveraged firms attract more PPP/SCA projects. The results also imply that when the most important segment report is coincident with the primary line of business industry, firms have more probability of being engaged with a PPP/SCA. Findings also show that profitability and financing costs (as a proxy for risk) are not robust determinant for attract a PPP/SCA. This paper adds to the scarce (but in a growing phase) literature on the financial reporting of service concessions arrangements, contributing to a better understanding of the extent and conditions behind PPP/SCA.

Suggested Citation

  • Lopes, Ana Isabel & Teixeira Caetano, Tânia, 2015. "Firm-level conditions to engage in public-private partnerships: What can we learn?," Journal of Economics and Business, Elsevier, vol. 79(C), pages 82-99.
    • Handle: RePEc:eee:jebusi:v:79:y:2015:i:c:p:82-99
    DOI: 10.1016/j.jeconbus.2015.01.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014861951500003X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jeconbus.2015.01.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Istemi Demirag & Iqbal Khadaroo & Pamela Stapleton & Caral Stevenson, 2012. "The diffusion of risks in public private partnership contracts," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 25(8), pages 1317-1339, October.
    2. Oliver Hart, 2003. "Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships," Economic Journal, Royal Economic Society, vol. 113(486), pages 69-76, March.
    3. Istemi Demirag & Iqbal Khadaroo, 2011. "Accountability and value for money: a theoretical framework for the relationship in public–private partnerships," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(2), pages 271-296, May.
    4. John Quiggin, 2005. "Public-Private Partnerships: Options for Improved Risk Allocation," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(4), pages 445-450, December.
    5. Renato E. Reside, Jr., 2008. "Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure," DEGIT Conference Papers c013_032, DEGIT, Dynamics, Economic Growth, and International Trade.
    6. Joaquim Miranda Sarmento, 2010. "Do Public-Private Partnerships Create Value for Money for the Public Sector? The Portuguese Experience," OECD Journal on Budgeting, OECD Publishing, vol. 10(1), pages 1-27.
    7. Froud, Julie, 2003. "The Private Finance Initiative: risk, uncertainty and the state," Accounting, Organizations and Society, Elsevier, vol. 28(6), pages 567-589, August.
    8. Anthony Wall & Ciaran Connolly, 2009. "The Private Finance Initiative," Public Management Review, Taylor & Francis Journals, vol. 11(5), pages 707-724, September.
    9. Mr. Etienne B Yehoue & Miss Mona Hammami & Jean-François Ruhashyankiko, 2006. "Determinants of Public-Private Partnerships in Infrastructure," IMF Working Papers 2006/099, International Monetary Fund.
    10. Demirag, Istemi & Khadaroo, Iqbal & Stapleton, Pamela & Stevenson, Caral, 2011. "Risks and the financing of PPP: Perspectives from the financiers," The British Accounting Review, Elsevier, vol. 43(4), pages 294-310.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shahin Shakibaei & Pelin Alpkokin, 2019. "Conflict Resolution in Competitive Liberalized Railway Market: Application of Game Theoretic Concepts," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-21, November.
    2. Chang Liu, 2021. "Infrastructure Public–Private Partnership (PPP) Investment and Government Fiscal Expenditure on Science and Technology from the Perspective of Sustainability," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    3. Huanming Wang & Xiaoyun Sun & Yu Shi, 2024. "Commercial investment in public–private partnerships: the impact of government characteristics," Local Government Studies, Taylor & Francis Journals, vol. 50(1), pages 230-260, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miranda Sarmento, J. & Renneboog, L.D.R., 2014. "Public-Private Partnerships : Risk Allocation and Value for Money," Other publications TiSEM b9218010-a357-4c0a-805a-7, Tilburg University, School of Economics and Management.
    2. Salvatore Russo, 2013. "The swing of public-private partnership in the Italian hospitals. A comparative analysis of two case studies," Working Papers 21, Department of Management, Università Ca' Foscari Venezia.
    3. Burke, Richard & Demirag, Istemi, 2015. "Changing perceptions on PPP games: Demand risk in Irish roads," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 27(C), pages 189-208.
    4. Miranda Sarmento, J. & Renneboog, L.D.R., 2014. "Anatomy of Public-Private Partnerships : Their Creation, Financing, and Renegotiations," Other publications TiSEM d276f5b6-49cb-40c7-b83c-1, Tilburg University, School of Economics and Management.
    5. Khadaroo, Iqbal, 2014. "The valuation of risk transfer in UK school public private partnership contracts," The British Accounting Review, Elsevier, vol. 46(2), pages 154-165.
    6. Miranda Sarmento, J.J. & Renneboog, Luc, 2016. "Anatomy of public-private partnerships : Creation, financing, and renegotiations," Other publications TiSEM dc944be7-8594-4439-90da-6, Tilburg University, School of Economics and Management.
    7. Opara, Michael & Rouse, Paul, 2019. "The perceived efficacy of public-private partnerships: A study from Canada," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 58(C), pages 77-99.
    8. David Martimort & Flavio Menezes & Myrna Wooders & ELISABETTA IOSSA & DAVID MARTIMORT, 2015. "The Simple Microeconomics of Public-Private Partnerships," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(1), pages 4-48, February.
    9. Yukari Fukuda & Jun-ichi Nakamura, 2021. "Economic Analysis of Public-Private Partnerships in Japan: Theoretical and Empirical Analyses Focusing on Adverse Selection and Synergy Effect," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 17(2), pages 1-27, November.
    10. Galilea, Patricia & Medda, Francesca, 2010. "Does the political and economic context influence the success of a transport project? An analysis of transport public-private partnerships," Research in Transportation Economics, Elsevier, vol. 30(1), pages 102-109.
    11. Ronit Mukherji, 2023. "Risk Sharing in Public-Private Partnerships," SN Operations Research Forum, Springer, vol. 4(4), pages 1-17, December.
    12. Kokkaew, Nakhon & Oliveira Cruz, Carlos & Alexander, Derek, 2015. "The impact of rule of laws on the recovery of distressed PPP infrastructure Projects," MPRA Paper 77494, University Library of Munich, Germany.
    13. Marian MOSZORO, 2014. "Efficient Public-Private Capital Structures," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 103-126, March.
    14. Elisabetta Iossa & David Martimort, 2011. "The Theory of Incentives Applied to the Transport Sector," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 29, Edward Elgar Publishing.
    15. Cian O'SHEA & Dónal PALCIC & Eoin REEVES, 2019. "Comparing Ppp With Traditional Procurement: The Case Of Schools Procurement In Ireland," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(2), pages 245-267, June.
    16. Julie de Brux & Frédéric Marty, 2014. "IPPP - Risks and opportunities An economic perspective," Post-Print halshs-00990951, HAL.
    17. Rabah Arezki & Patrick Bolton & Sanjay Peters & Frederic Samana & Joseph Stiglitz, 2015. "From Global Savings Glut to Financing Infrastructure: The Advent of Investment Platforms," OxCarre Working Papers 166, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    18. Buso, Marco & Marty, Frederic & Tran, Phuong Tra, 2017. "Public-private partnerships from budget constraints: Looking for debt hiding?," International Journal of Industrial Organization, Elsevier, vol. 51(C), pages 56-84.
    19. Frédéric Marty & Arnaud Voisin, 2007. "Les difficultés d’exécution des Partenariats Public-Privé: le retour d’expérience des contrats de Private Finance Initiative britanniques," Documents de Travail de l'OFCE 2007-26, Observatoire Francais des Conjonctures Economiques (OFCE).
    20. Ricardo Ferreira Reis & Joaquim Miranda Sarmento, 2019. "“Cutting costs to the bone”: the Portuguese experience in renegotiating public private partnerships highways during the financial crisis," Transportation, Springer, vol. 46(1), pages 285-302, February.

    More about this item

    Keywords

    Public–private partnerships; Concessions; IFRIC 12; Portugal;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jebusi:v:79:y:2015:i:c:p:82-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-economics-and-business .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.