Does government support affect private partners’ profitability in public–private partnerships? Evidence from China

Author:

Xu HanORCID

Abstract

AbstractInfrastructures based on the idea of public–private partnership (PPP) contributes to promoting infrastructure investments, improving public services, and satisfying social demands worldwide over the last thirty years. Public sector support is a crucial factor in attracting the private sector. However, little is known about the effect of public sector support on investors’ profitability. Utilizing a conceptual framework and empirical analysis, in this paper, we explore the dual impact of government support on PPP firm profitability. Our model shows that while compliant government support can theoretically enhance a PPP firm’s profitability, some supportive behavior may harm the firm’s profitability. Employing unique comprehensive project-level and firm-level data on 555 Chinese A-share listed companies from 2010 to 2019 and new variables to measure government support, we find that while inclusion in the national PPP platform can enhance firm profitability by 8.2%, increased shareholding reduces firm profitability significantly by −23.3%. Our results imply that the government should reasonably support the private sector in PPP projects. Our study extends the literature on the role of government support in PPP projects.

Publisher

Springer Science and Business Media LLC

Subject

General Economics, Econometrics and Finance,General Psychology,General Social Sciences,General Arts and Humanities,General Business, Management and Accounting

Cited by 2 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. ATTRACTING PRIVATE INVESTMENT IN PUBLIC-PRIVATE-PARTNERSHIP: TAX REDUCTION OR RISK SHARING;JOURNAL OF CIVIL ENGINEERING AND MANAGEMENT;2024-07-17

2. Economic asymmetries and the new “markets of tomorrow”;Business Strategy & Development;2023-08-14

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3