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

Author

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  • 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
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    References listed on IDEAS

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    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.
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    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.
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    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.
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    Cited by:

    1. 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.
    2. 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.
    3. 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.

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    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

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