The multi-faceted impact of host country risk on the success of private participation in infrastructure projects

Abstract

Purpose This paper aims to investigate the multi-faceted impact of host country risks on the success of private participation in infrastructure projects. The authors make a distinction between exogenous and endogenous risks, differentiating those that are completely beyond the control of the firm from those in which firms might exert some degree of influence to reduce the negative repercussions. Design/methodology/approach Drawing on logistic regression analyses, the authors analyze a sample of 10,350 private participation in infrastructure projects in 126 countries from 1997 to 2014. Findings The authors find that higher levels of exogenous risk are associated with a lower probability of project success, whereas they find no significant effect for endogenous risk. Originality/value By pointing to this differential effect, this study makes a contribution to the current debate in the literature on private participation projects.

Overseas compliance risk prevention for multinational corporations in a law and economics perspective: empirical evidence from Chinese MNCs

“…By exploring how the factors of “bad apples,” “red barrel” and “bad cellar” interact to lead to overseas violations (Ertz et al , 2019; Kish-Gephart et al , 2010; Muzio et al , 2016), we unveiled the process of overseas compliance risk exposure. Our research confirms that overseas compliance risks are affected by the intertwining of individual, organizational and systematic factors, thus provides an advanced understanding of overseas compliance risk prevention in a law and economics perspective and responds to the recent call for the research on multi-level factors of MNCs’ risk (Ullah et al , 2019; Markscheffel and Plouffe, 2021; Jiménez et al , 2022). Future research should further examine which factors are the crucial factors and how each factor is closely intertwined and interacted in the process of overseas compliance operation risk prevention.…”

Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective

“…The concept of country risk brings to the fore the distinct characteristics of each country's natural and economic endowment [75], political and regulatory systems [65,66], political stability [26,76], fiscal and monetary stability, as well as their previous experiences with public-private partnerships (PPPs), i.e., whether the central government has implemented the PPP model before and whether the country has the corresponding expertise in risk management [77,78]. Jimenez et al [75] further classified country risks into endogenous and exogenous country risks through whether the risk is endogenous or exogenous to the PPP projects.…”

“…The World Bank PPI database is widely used by many researchers to investigate diverse forms of PPP. [26,32,[62][63][64][65]75]. The PPI database is cross-sectional and each project is considered independent.…”

“…The dependent variable in this study is project status, which is binary. A value of 1 indicates a distressed or canceled project, while a value of 0 indicates an ongoing or successfully completed project [26,75].…”