Institutional Quality, Investment Efficiency, and the Choice of Public–Private Partnerships

Dao, Nhung Hong, Marisetty, Vijaya Bhaskar, Shi, Jing, and Tan, Monica (2020) Institutional Quality, Investment Efficiency, and the Choice of Public–Private Partnerships. Accounting and Finance, 60 (2). pp. 1801-1834.

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Abstract

We examine a sample of 625 public–private partnership (PPP) firms from 1980 to 2015 that straddle nine countries with varying degrees of economic development and PPP markets. We find that the motivations of the firms that undertake PPP investments vary. While private sector firms in economies with low institutional quality choose to engage in PPPs to alleviate capital constraints attributed to underinvestment, those in economies with high institutional quality participate in PPPs to solve the problem of overinvestment due to an abundant cash flow. In the long run, the benefits of lower capital constraints through PPP investments are more pronounced in economies with high institutional quality.

Item ID: 72733
Item Type: Article (Research - C1)
ISSN: 1467-629X
Copyright Information: © 2019 Accounting and Finance Association of Australia and New Zealand
Date Deposited: 02 Aug 2022 22:46
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350202 Finance @ 100%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1505 Microeconomics > 150506 Market-based mechanisms @ 100%
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