Dugal, M.; Tiwari, S.R. Impact of Risk, Subsidy, and Bid-Criteria on the Private Investment in Public–Private Partnerships in Infrastructure Projects. J. Risk Financial Manag.2024, 17, 184.
Dugal, M.; Tiwari, S.R. Impact of Risk, Subsidy, and Bid-Criteria on the Private Investment in Public–Private Partnerships in Infrastructure Projects. J. Risk Financial Manag. 2024, 17, 184.
Dugal, M.; Tiwari, S.R. Impact of Risk, Subsidy, and Bid-Criteria on the Private Investment in Public–Private Partnerships in Infrastructure Projects. J. Risk Financial Manag.2024, 17, 184.
Dugal, M.; Tiwari, S.R. Impact of Risk, Subsidy, and Bid-Criteria on the Private Investment in Public–Private Partnerships in Infrastructure Projects. J. Risk Financial Manag. 2024, 17, 184.
Abstract
This study investigates the complex role of financial risks in the context of public–private partnerships (PPPs) in India and their relationship to the amount and extent of investments made by private partners (s). We hypothesize that subsidies, bid criteria, and risk have a positive relationship with investments made by private partners. A project’s leverage moderates these relationships. Regression was used to analyze the hypotheses using SPSS 24 and PROCESS Macro. Data from the World Bank were collected from 2009 to 2019 for the study variables. Interestingly, our research finds support for these relationships that may seem contrary to some commonly-held notions of risk relationships, such as – the government using ‘viability gap’ funding to attract private investment and ‘leverage’ does not moderate the relationship between risk assumed and private investment. This study is among the first to recognize and elaborate on financial risk relationships, specifically in the context of Indian PPPs. These findings are significant for both private and public participants in terms of financial considerations in PPP projects, especially in emerging markets.
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
