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RESEARCH PRODUCT
Public-Private Partnerships: Agency Costs in the Privatization of Social Infrastructure Financing
Espen Solheim-kileOla LædreJardar Lohnesubject
Financebusiness.industryStrategy and Management05 social sciencesAgency cost0211 other engineering and technologiesPrincipal–agent problemPublic debate02 engineering and technologySocial infrastructurePublic–private partnershipManagement of Technology and Innovation021105 building & construction0502 economics and businessBusinessBusiness and International Management050203 business & managementdescription
Public-private partnerships (PPPs) have been subjected to considerable public debate. In particular, this debate has concerned PPP financing and its implications. Using insights from agency theory, this study aims to develop a theoretical understanding of PPP financing. The following research question is investigated: How does the privatization of financing decrease or increase agency costs in social infrastructure PPPs? A comparative case study consisting of four Norwegian PPP projects with different financial configurations is undertaken. The findings suggest that the private sector is risk averse, increasing the cost of capital. In addition, private financing does not seem to have the intended incentive effect.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-01-29 | Project Management Journal |