Abstract
Purpose – The purpose of this paper is to detect how Value for Money (VfM) in Italian Project
Finance (PF) investments can be enhanced and challenging criticalities minimized, with a synergistic
interaction of macroeconomic, legal and institutional actions.
Design/methodology/approach – Analysis of VfM quantitative key drivers, within a public-private
partnership (PPP) framework with specific reference to a recession context, with infrastructural capital
rationing implications. Empirical evidence is given by an Italian PF healthcare model, testing the impact
of legal and macroeconomic changes.
Findings – Deleverage, ignited by W-shaped recession, disinflates PPP investments, so forcing to
innovative and penniless solutions. Unreliable and short-sighted legislation and consequent unfriendly
business climate may frighten investors, so decreasing competition and VfM.
Research limitations/implications – VfM sensitivity to macroeconomic and legal/institutional
parameters is too wide and capriciously erratic to be comprehensively modeled. Tips for further research
include pro-growth tax and budgetary policies, risk minimization issues and other synergistic targets.
Practical implications – Guidance to regulators to fine tune legal and institutional tools, so as to
create a stable, business friendly environment. Recessions may be softened by sensitive policymaking,
or exacerbated by short-sighted ignorance and lack of strategic focus.
Originality/value – Unprecedented analysis of legal and macroeconomic changes on VfM in Italian
PF investments, with original tips for VfM optimization, in a comprehensive PPP framework.
Lingua originale | English |
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pagine (da-a) | 1058-1077 |
Numero di pagine | 20 |
Rivista | Managerial Finance |
Volume | 40 |
DOI | |
Stato di pubblicazione | Pubblicato - 2014 |
Keywords
- Cost of capital
- Fiscal policy
- Keynesian growth
- PPP
- Recession
- legislative risk