Institutional Quality, Investment Efficiency, and the Choice of Public–Private Partnerships
Journal Publication ResearchOnline@JCUAbstract
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.
Journal
Accounting and Finance
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N/A
Volume
60
ISBN/ISSN
1467-629X
Edition
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Issue
2
Pages Count
34
Location
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Publisher
Wiley-Blackwell
Publisher Url
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Publisher Location
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Publish Date
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Url
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Date
N/A
EISSN
N/A
DOI
10.1111/acfi.12514