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Risks in the Investment Activity of Polish Regions

Author

Listed:
  • Filipiak Beata Zofia

    (University of Szczecin, Szczecin, Poland)

  • Dylewski Marek

    (WSB University, Poznań, Poland)

Abstract

Investment activities executed by regional authorities are exposed to high risk. The risk results from the very essence of investment projects implemented by regions in Poland and can be associated with the failure to meet the regional budget. The purpose of this study is to assess the size of the existing discrepancies between the planned and actually incurred investment expenditure and to find out if there are systematic changes in the level of these discrepancies i subsequent years. This goal was achieved through the presentation of the specific approach to risk measurement in the investment activities of local government units. The research was undertaken by regional self-government units. Empirical research has allowed us to answer three research questions: how great were the disparities between the planned and the actually incurred investment costs in the Polish regions in 2011-2015? Did systematic changes in the level of inconsistency between the planned and the actually incurred costs take place in the observed period? Was the rate of failure to meet investment plans correlated with the rate of failure to meet operational financial plans?

Suggested Citation

  • Filipiak Beata Zofia & Dylewski Marek, 2018. "Risks in the Investment Activity of Polish Regions," Financial Sciences. Nauki o Finansach, Sciendo, vol. 23(4), pages 25-37, December.
    • Handle: RePEc:vrs:finsci:v:23:y:2018:i:4:p:25-37:n:2
    DOI: 10.15611/fins.2018.4.02
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    References listed on IDEAS

    as
    1. LeRoy, Stephen F & Singell, Larry D, Jr, 1987. "Knight on Risk and Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 394-406, April.
    2. Piyatrapoomi, N & Kumar, A & Setunge, S, 2004. "Framework For Investment Decision-Making Under Risk And Uncertainty For Infrastructure Asset Management," Research in Transportation Economics, Elsevier, vol. 8(1), pages 199-214, January.
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    More about this item

    Keywords

    local government; expenditure; infrastructure; financial risk;
    All these keywords.

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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