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on Project, Program and Portfolio Management |
| By: | Peter J. Simmons; Anna Maria C. Menichini |
| Abstract: | Within a costly state verification model with endogenous audit and commitment, the paper proposes a rationale for joint financing based on the reduction of audit costs. Joint financing dominates separate financing when the incentive effects brought about by optimally chosen variable intensity audits, with the worst outcomes audited intensively and the intermediate ones residually, outweigh the cost of joint financing. This is represented by the extra-deadweight loss due to the unnecessary audit that a successful project may undergo when jointly financed. The result always holds when joint financing involves coinsurance gains -a successful project bails out a failing onebut may also hold under contagion -a succeeding project is dragged down by a failing one. Moreover, it is robust to the sequencing of audits. The paper derives a number of testable predictions relating the emergence of joint financing to project returns, investment cost, bankruptcy costs, quality of accounting standards and timing of audits. |
| Keywords: | contracts, auditing, project Önance, conglomerates. |
| JEL: | D82 D83 D86 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:22/06&r= |
| By: | Peter J. Simmons; Nongnuch Tantisantiwong |
| Abstract: | This paper fills the gap in the literature by introducing an efficient, incentive compatible audit policy that can minimise the social loss created by the audit cost while maximising social welfare. We apply this within a loan auditing context, but the method is also applicable to any accounting and tax audit context. We explain why the loan contract design for finance of projects varies between different situations. Each project outcome is random and private information of its individual owner, but reported outcomes can be audited at a cost. Our framework simultaneously determines incentive compatible auditing policies, interest rates and default probabilities to yield an efficient contract design. We show how the socially best loan audit policy and repayments depend on the degrees of information asymmetry and risk correlation between projects, the number of agents in the agreement and the agents’ perception of loan default. |
| Keywords: | Optimal contract, Incentive compatible audit policy, Heterogeneous and correlated risk, Welfare, Loan auditing |
| JEL: | D81 D82 G21 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:22/07&r= |
| By: | Engel,Eduardo; Ferrari,Martín; Fischer,Ronald; Galetovic,Alexander |
| Abstract: | Public-private partnerships are used to procure public infrastructure. Despite involving privateinvestors and concessionaires, they impact the public budget like traditional provision and create fiscal risks. Thispaper develops a conceptual framework to assess whether and how public-private partnerships shift risks toconcessionaires and financiers. It uses this framework to describe and assess the Chilean public-private partnershipsprogram. The paper identifies renegotiations as the major source of fiscal risk, which involved additionalinvestments, increasing the cost by about one-third over the original project cost estimates. The 2010 law reform onpublic-private partnerships introduced changes to the renegotiations regime and began the routine use of variableterm contracts. Using contractual data, the analysis finds evidence suggesting that renegotiations fell dramatically.The paper also calculates the realized internal rates of return for 50 highway and airport public-privatepartnerships, using cash flow data for the entire public-private partnerships program, which started in 1991.The average internal rate of return is 6.8 percent, with averages of 9.1 and 3.1 percent for fixed and variable termpublic-private partnerships, respectively. The returns show a large dispersion, which suggests that infrastructureprojects are intrinsically risky and private participation entails significant risk shifting from the budget toconcessionaires and financiers. |
| Date: | 2022–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10056&r= |
| By: | Jeremy Greenwood; Pengfei Han; Hiroshi Inokuma; Juan M. Sanchez |
| Abstract: | This article uses an endogenous growth model to study how the improvements in financing for innovative start-ups brought by venture capital (VC) affect firm innovation and growth. Partial equilibrium results show how lending contracts change as financing efficiency improves, while general equilibrium results demonstrate that better screening and development of projects by VC investors leads to higher aggregate productivity growth. |
| Keywords: | endogenous growth; financial development; innovation; IPO; screening; research and development; startups; venture capital |
| JEL: | E13 E22 G24 L26 O16 O31 O40 |
| Date: | 2022–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:94817&r= |
| By: | Gabriela Demarchi (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier, CIFOR - Center for International Forestry Research - CGIAR - Consultative Group on International Agricultural Research [CGIAR]); Caue D Carrilho (USP - Universidade de São Paulo); Thibault Catry (UMR 228 Espace-Dev, Espace pour le développement - IRD - Institut de Recherche pour le Développement - UPVD - Université de Perpignan Via Domitia - AU - Avignon Université - UR - Université de La Réunion - UG - Université de Guyane - UA - Université des Antilles - UM - Université de Montpellier); Stibniati Atmadja (CIFOR - Center for International Forestry Research - CGIAR - Consultative Group on International Agricultural Research [CGIAR]); Julie Subervie (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier, INSPÉ Montpellier - Mémoires - Institut national supérieur du professorat et de l'éducation - Académie de Montpellier - UM - Université de Montpellier) |
| Abstract: | Understanding why forest conservation initiatives succeed or fail is essential to designing cost-effective programs at scale. In this study, we investigate direct and indirect impact mechanisms of a REDD+ project that was shown to be effective in reducing deforestation during the early years of its implementation in the Transamazon region, an area with historically high deforestation rates. Using counterfactual impact evaluation methods applied to survey and remote-sensing data, we assess the impact of the project over 2013-2019, i.e., from its first year until two years after its end. Based on the Theory of Change, we focus on land use and socioeconomic outcomes likely to have been affected by changes in deforestation brought about by the initiative. Our findings highlight that forest conservation came at the expense of pastures rather than cropland and that the project induced statistically greater agrobiodiversity on participating farms. Moreover, we find that the project encouraged the development of alternative livelihood activities that required less area for production and generated increased income. These results suggest that conservation programs, that combine payments conditional on forest conservation with technical assistance and support to farmers for the adoption of low-impact activities, can manage to slow down deforestation in the short term are likely to induce profound changes in production systems, which can be expected to have lasting effects. |
| Keywords: | REDD+,CO2 emissions,impact evaluation,livelihood,Brazilian Amazon |
| Date: | 2022–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-03778384&r= |
| By: | Pierre Baret (Excelia Group | La Rochelle Business School, CEREGE - Centre de Recherche en Gestion - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - La Rochelle Université - Excelia Group | La Rochelle Business School, CeRIIM - Excelia Group | La Rochelle Business School); Dimbi Ramonjy (Excelia Group | La Rochelle Business School, CeRIIM - Excelia Group | La Rochelle Business School, CEREGE - Centre de Recherche en Gestion - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - La Rochelle Université - Excelia Group | La Rochelle Business School); Philippe Schäfer (Excelia Group | La Rochelle Business School, CeRIIM - Excelia Group | La Rochelle Business School, CEREGE - Centre de Recherche en Gestion - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - La Rochelle Université - Excelia Group | La Rochelle Business School) |
| Abstract: | How can we ensure that research work in management science is useful to society? The purpose of our article is to show that Intervention Research in Management (IRM) is an effective research methodology for doing just this. IRM is incorporated within the Engaged Scholarship approach: the co-construction of knowledge is the result of researchers working with members of organisations. The aim of this process is to increase the likelihood that complex phenomena will be understood as well as ensuring the usefulness of the research to society. Through a number of IR studies carried out over the past decade, we can demonstrate that this methodology applied to CSR processes… 1. constitutes a responsible source of innovation and has 'societal value' 2. facilitates the implementation of a strategic project to successfully anticipate a changing environment, enhanced by organisational agility. Ultimately, the societal utility of this form of research is threefold:-it contributes to the development of research knowledge in management science-it enables the operational implementation of responsible approaches within organisations-it provides CSR education that is firmly grounded in the real world, constantly updated to address the most relevant issues facing organizations and focused on the acquisition of skills by learners. |
| Abstract: | Comment s'assurer de l'utilité sociétale d'un travail de recherche en sciences de gestion ? L'objet de notre article est de montrer que la recherche-intervention (RI) constitue une méthodologie de recherche efficace pour y parvenir. La RI s'inscrit dans la perspective de l'Engaged Scholarship : la production de connaissances est le produit d'une co-construction entre chercheurs et membres des organisations. Ce processus est destiné à augmenter la probabilité de compréhension de phénomène complexe ainsi que l'utilité sociétale de la recherche. Au travers de multiples RI réalisées depuis plus d'une décennie, nous montrons que : 1) cette méthodologie appliquée aux démarches de RSE correspond à une innovation responsable source de « valeur sociétale » et 2) permet un projet stratégique d'anticipation pertinente d'un contexte évolutif, favorisé par une agilité organisationnelle. Au final, l'utilité sociétale de cette forme de recherche est triple : - elle contribue à la construction de la connaissance scientifique en sciences de gestion ; - elle permet d'implémenter de manière opérationnelle des démarches responsables au sein des organisations ; - elle nourrit un enseignement de la RSE ancré dans le réel, constamment réactualisé des problématiques les plus récentes des organisations, et tourné vers l'acquisition des compétences par les apprenants. |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03768510&r= |
| By: | Herrera Dappe,Matias; Melecky,Martin; Turkgulu,Burak |
| Abstract: | Since the early 1990s, public-private partnerships (PPPs) in infrastructure provision have beenexpanding around the world and in South Asia. Well-structured PPPs can unleash efficiency gains in theprovision of infrastructure. But PPPs create liabilities for governments, including contingent liabilities. Providinginfrastructure through PPPs is preferred to public provision if the efficiency gains offset the higher cost of privatefinancing and the unexpected public liabilities that PPPs may create. This paper attempts to assess the fiscal risksfrom contingent liabilities assumed by South Asian governments owing to their current stock of PPPs ininfrastructure. First, it analyzes the drivers of PPP distress. Second, it simulates scenarios of fiscal risks forSouth Asian governments from risky PPPs. Third, it studies specific PPP contract designs and their relationship withearly termination in South Asia to draw lessons for future PPP contract structuring. |
| Date: | 2022–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:10137&r= |
| By: | Haleh Kootval; Alice Soares |
| Keywords: | Agriculture - Climate Change and Agriculture Conflict and Development - Disaster Management Environment - Adaptation to Climate Change Environment - Natural Disasters Science and Technology Development - Climate and Meteorology |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:34817&r= |
| By: | World Bank |
| Keywords: | Infrastructure Economics and Finance - Private Participation in Infrastructure Urban Development - Urban Economic Development Urban Development - Urban Governance and Management Urban Development - Urban Housing |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:34889&r= |