The public-private partnership valuation paradox

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Gray ◽  
Jason Hall ◽  
Grant Pollard ◽  
Damien Cannavan
Keyword(s):  
Mathematical Proof ◽  
Systematic Risk ◽  
Cash Flows ◽  
Current Theory ◽  
Apparent Paradox ◽  
Content Type ◽  
The Public ◽  
The Past ◽  
Alternative Approaches ◽  
Practical Implications

Purpose In the context of public-private partnerships (PPPs), it has been argued that the standard valuation framework produces a paradox whereby government appears to be made better off by taking on more systematic risk. This has led to a range of approaches being applied in practice, none of which are consistent with the standard valuation approach. The purpose of this paper is to demonstrate that these approaches are flawed and unnecessary. Design/methodology/approach The authors step through the proposed alternative valuation approaches and demonstrate their inconsistencies and illogical outcomes, using theory, logic and mathematical proof. Findings In this paper, the authors demonstrate that the proposed (alternative) approaches suffer from internal inconsistencies and produce illogical outcomes in some cases. The authors also show that there is no problem with the current accepted theory and that the apparent paradox is not the result of a deficiency in the current theory but is rather caused by its misapplication in practice. In particular, the authors show that the systematic risk of cash flows is frequently mis-estimated, and the correction of this error solves the apparent paradox. Practical implications Over the past 20 years, PPP activity around the globe amounts to many billions of dollars. Decisions on major infrastructure funding are of enormous social and economic importance. Originality/value To the best of the authors’ knowledge, this study is the first to demonstrate the flaws and internal inconsistencies with proposed valuation framework alternatives for the purposes of evaluating PPPs.

Is auditing the new evaluation? Can it be? Should it be?

2018 ◽  
Vol 31 (6) ◽  
pp. 726-739 ◽  
Author(s):  
Jon Pierre ◽  
B. Guy Peters ◽  
Jenny de Fine Licht
Keyword(s):  
Comparative Research ◽  
Qualitative Method ◽  
Time Perspective ◽  
Extensive Literature ◽  
Public Programs ◽  
Content Type ◽  
The Public ◽  
The Past ◽  
Practical Implications

Purpose The purpose of this paper is to study the changing relationship between auditing and evaluation. Over the past several years, supreme auditing institutions (SAIs) in a number of advanced democracies have evolved from conventional auditing institutions to becoming increasingly concerned with assisting policy change and administrative reform in the public sector; tasks that are traditionally associated with evaluation. The paper discusses the potential consequences of this development for the SAIs themselves as well as for the audited and reforming institutions and for policy-making. Design/methodology/approach The paper uses qualitative method and draws on the extensive literature on auditing and evaluation. The analysis has also benefitted from the authors’ recent comparative research on SAIs. Findings The findings, summarized in six points, are that the growth of auditing in areas previously assigned to evaluators, has led to a shortened time perspective; stronger emphasis on the administration of policies; increased focus on efficiency of the audited entity; greater independence from the evaluated organizations; a shift in receiver of information toward the legislature and/or the public; and improved communication. Practical implications Evaluation as a professional and scholarly field has developed theories and advanced methods to assess the effectiveness of public programs. The growth of auditing may thus change the focus and quality of policy evaluation. Originality/value The paper speaks to both scholars and practitioners. To the best of the knowledge a similar analysis has not been done before.

The conceptual heritage of public relations: using public memory to explore constraints and liberation

2019 ◽  
Vol 23 (4) ◽  
pp. 375-392
Author(s):  
W. Timothy Coombs ◽  
Sherry J. Holladay
Keyword(s):  
Public Relations ◽  
Design Methodology ◽  
Public Memory ◽  
Content Type ◽  
The Public ◽  
The Past ◽  
Counter Narratives ◽  
Dominant Narratives ◽  
Practical Implications ◽  
Development And Evolution

Purpose The purpose of this paper is to describe three foundational concepts that contribute to conceptual heritage of the field of public relations (publics, organizations and relationships). Conceptual heritage is positioned as a type of shared public memory, a dominant narrative, that encourages adherence to the past whilst recognizing that counter-narratives can pose useful alternatives to foundational concepts. Design/methodology/approach The approach is a selective literature review that describes three dominant concept categories and presents more recently developed alternative concepts and approaches to illustrate how public memory is subjective and evolving. Findings The concepts of publics, organizations and relationships have grounded the dominant narrative and development of the field of public relations. Though these concepts continue to be influential as researchers rely upon and expand upon their legacies, counter-narratives can spur the innovation of ideas, measurement and practice. Research limitations/implications The paper focuses on only three major foundational concepts selected by the authors. The importance of these concepts as well as additional examples of the field’s conceptual heritage and evolution could be identified by different authors. Practical implications The analysis demonstrates how the public memory contributes to the development and evolution of the field of public relations. Counter-narratives can offer appealing, subjectively constructed challenges to dominant narratives. Originality/value This paper describes and critiques public relations’ conceptual heritage and argues that conceptually and methodologically-based counter-narratives have contributed to its evolution.

Disentangling anti-corruption agencies and accounting for their ineffectiveness

2019 ◽  
Vol 26 (1) ◽  
pp. 22-35
Author(s):  
Maria Krambia-Kapardis
Keyword(s):  
Legitimacy Theory ◽  
Legal Process ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
The Past ◽  
Exogenous Factors ◽  
The One ◽  
Practical Implications ◽  
Control Challenge

Purpose The purpose of this paper is to provide an adequate account of anti-corruption agency (ACA) ineffectiveness and propose the kind of ACA that would hold the promise of success. The paper draws on legitimacy theory, legal process and the notion of integrity of purpose. Design/methodology/approach This paper contextualizes the establishment and proliferation of ACAs; explores different ways of conceptualizing them; examines the broad range of factors that have underpinned ACA ineffectiveness and utilizes both legitimacy theory and the notion of the integrity of purpose. Findings The one-ACA-model-fits-all approach in corruption-control has been an abysmal failure. Disentangling the reasons for ACA ineffectiveness reveals various endogenous and exogenous factors. It also emphasizes the crucial importance of integrating both legitimacy theory and integrity of purpose in a revamped ACA concept that meets the corruption-control challenge. Practical implications It is possible to design and implement an effective ACA by avoiding various factors that have been shown to seriously undermine corruption control efforts by also drawing on legitimacy theory, legal process and integrity of purpose. Social implications Corruption in both the public and private sectors cannot be controlled in isolation from other socio-economic problems. An effective ACA is one that fosters integrity and is considered legitimate by its stakeholders. Originality/value While there have been some articles the past two decades discussing the effectiveness of ACAs in particular countries, this is the first paper to account for the overall ACA ineffectiveness also using legitimacy theory, legal process and integrity of purpose to revamp the ACA concept.

Investigating interdependencies of sustainable supplier selection criteria: an appraisal using ISM

2020 ◽  
Vol 13 (2) ◽  
pp. 195-210 ◽  
Author(s):  
Avanish Singh Chauhan ◽  
Gaurav Kumar Badhotiya ◽  
Gunjan Soni ◽  
Prem Kumari
Keyword(s):  
Supplier Selection ◽  
Selection Criteria ◽  
Local Community ◽  
Pollution Prevention ◽  
Content Type ◽  
The Past ◽  
Micmac Analysis ◽  
Sustainable Supplier Selection ◽  
Social Environmental ◽  
Practical Implications

Purpose Because of the increased global competition and the need for environment consciousness, organisations have started focusing on incorporating sustainability dimensions into suppler selection criteria. In the past decade, sustainable supplier selection has received much attention from researchers as well as industry practitioners. The purpose of this paper is to identify various sustainable supplier selection criteria (SSSC) and underlying interdependencies among prominent selection criteria to develop a framework for sustainability dimensions. Design/methodology/approach The sustainable criteria for supplier selection were established through comprehensive literature review. An interpretive structural modelling (ISM) approach is used to investigate the interrelationships among these criteria. Findings A total of 21 SSSC under 3 dimensions (social, environmental and economic) are established. Ten criteria related to quality, capability, flexibility, waste management, pollution prevention, local community, employment practice, labour, etc. are exhibiting strong driving as well as dependence power, as demonstrated through ISM and matriced’ impacts croises-multiplication applique’ and classement (MICMAC) analysis. The findings show that delivery/service, eco design and rights of stakeholders are the “key” criteria having a high-driving and low-dependence power. These criteria require high attention from managers, while other criteria having low-driving and high-dependence power require secondary actions. Research limitations/implications The inter-relations for the development of ISM model and MICMAC analysis were obtained through the opinion of industry experts and academicians, which may tend to be subjectively biased. Further exploration is proposed to statistically validate the developed interdependency model. Practical implications This paper might act as a reference for the supplier development managers of organisations by providing an appraisal of various SSSC based on their interdependencies. Originality/value This study contributes to the knowledge base by proposing a framework of the interrelationships of the SSSC and also provides an additional perspective for managing these criteria based on ISM.

Shapeholders: managing them as allies, partners and significant constituents

2017 ◽  
Vol 45 (5) ◽  
pp. 41-48 ◽  
Author(s):  
Oleksiy Osiyevskyy ◽  
Vladyslav Biloshapka
Keyword(s):  
Business Models ◽  
Social Activism ◽  
Business Success ◽  
Content Type ◽  
Building Relationships ◽  
The Public ◽  
Short Run ◽  
Common Interests ◽  
The Subject ◽  
Practical Implications

Purpose The authors review the concept of building relationships with Shapeholders,: a broad group of players that have no financial stake in the company yet can substantively influence it. The process for doing this is the subject of a new book by Mark Kennedy, Shapeholders: Business success in the age of social activism. Design/methodology/approach The authors examine Mark Kennedy’s framework for managing the firm’s shapeholders, a model composed of seven basic steps (7A’s): Align with a purpose, Anticipate, Assess, Avert, Acquiesce, Advance common interests, and Assemble to win. Findings Managing corporate reputation in alliance with enlightened shapeholders is a potential defense against self-aggrandizing schemes to wantonly maximize shareholder value in the short run. Practical implications Managing shapeholders is part of the messy democratic process that works when power is apportioned fairly among those affected by a firm’s decisions, and this process underpins the winning business models of true market leaders. Social implications Stakeholders previously discredited as mere “mosquitos” have gained new power, particularly when their legitimate concerns and unfair treatment resonate with the interests of a significant segment of the public and influential shapeholders. Originality/value Shapeholders can create enormous opportunities for smart managers capable of effectively engaging with them.

FINRA’s disciplinary actions in 2017: increased restitution ordered with minimal changes in number of cases

2018 ◽  
Vol 19 (2) ◽  
pp. 19-23
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Financial Industry ◽  
Electronic Communications ◽  
Content Type ◽  
The Past ◽  
Expert Analysis ◽  
Research Analysts ◽  
Practical Implications

Purpose The purpose of this paper is to analyze the Financial Industry Regulatory Authority’s (FINRA) 2017 disciplinary actions, the issues that resulted in the most significant fines and restitution and the emerging enforcement trends from 2017 and beyond. Design/methodology/approach The approach of this paper discusses the disciplinary actions in 2017 and prior years, details the top 2017 enforcement issues measured by total fines assessed, including anti-money laundering, trade reporting, electronic communications, books and records, research analysts and research reports, and explains current enforcement trends, including restitution, suitability cases and technological issues. Findings In 2017, restitution more than doubled from the prior year, resulting in the fourth highest total sanctions (fines combined with restitution and disgorgement) assessed by FINRA over the past 10 years. Practical implications Firms and their representatives should heed the trends in both the substantial restitution FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value This paper provides expert analysis and guidance from experienced securities enforcement lawyers.

Autonomous vehicles: a review of the ethical, social and economic implications of the AI revolution

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shweta Banerjee
Keyword(s):  
Artificial Intelligence ◽  
Autonomous Vehicles ◽  
Design Methodology ◽  
Technological Advancement ◽  
Economic Implications ◽  
Content Type ◽  
The Public ◽  
Autonomous Cars ◽  
The Subject ◽  
Practical Implications

PurposeThere are ethical, legal, social and economic arguments surrounding the subject of autonomous vehicles. This paper aims to discuss some of the arguments to communicate one of the current issues in the rising field of artificial intelligence.Design/methodology/approachMaking use of widely available literature that the author has read and summarised showcasing her viewpoints, the author shows that technology is progressing every day. Artificial intelligence and machine learning are at the forefront of technological advancement today. The manufacture and innovation of new machines have revolutionised our lives and resulted in a world where we are becoming increasingly dependent on artificial intelligence.FindingsTechnology might appear to be getting out of hand, but it can be effectively used to transform lives and convenience.Research limitations/implicationsFrom robotics to autonomous vehicles, countless technologies have and will continue to make the lives of individuals much easier. But, with these advancements also comes something called “future shock”.Practical implicationsFuture shock is the state of being unable to keep up with rapid social or technological change. As a result, the topic of artificial intelligence, and thus autonomous cars, is highly debated.Social implicationsThe study will be of interest to researchers, academics and the public in general. It will encourage further thinking.Originality/valueThis is an original piece of writing informed by reading several current pieces. The study has not been submitted elsewhere.

The identity crisis of sustainable development

2014 ◽  
Vol 11 (1) ◽  
pp. 4-15 ◽  
Author(s):  
Catalin Ratiu ◽  
Beverlee B. Anderson
Keyword(s):  
Sustainable Development ◽  
Design Methodology ◽  
Identity Crisis ◽  
Primary Data ◽  
Future Research ◽  
Clear Understanding ◽  
Content Type ◽  
The Public ◽  
Larger Sample ◽  
Practical Implications

Purpose – There are many different conceptualizations to sustainable development and these different approaches may have led to confusion amongst the public. The purpose of this paper is to explore the identities of the term and how the confused identity may be leading to problems for sustainable development efforts. Design/methodology/approach – The design is exploratory, using both secondary and primary data to understand the different sustainable development concepts. Findings – There is no consistent understanding or use of the term “sustainable development” among various groups. Research limitations/implications – Future research should include a larger sample that is more representative of people from different backgrounds and geographical areas. Practical implications – The public is generally willing to support only projects that it understands. Without a clear understanding of sustainable development, the public will be less inclined to support these efforts. Originality/value – This study examines the perceptions and understandings of the term by the general public representing different generations.

scholarly journals Innovation and cross-functional teams

2018 ◽  
Vol 24 (1/2) ◽  
pp. 84-105 ◽  
Author(s):  
Daniel Marasquini Stipp ◽  
Márcio Lopes Pimenta ◽  
Daniel Jugend
Keyword(s):  
Single Case ◽  
Field Research ◽  
Incremental Innovation ◽  
Future Research ◽  
Content Type ◽  
The Public ◽  
Tax Management ◽  
Functional Teams ◽  
Practical Implications

Purpose The aim of this paper is to characterize how innovation may happen through cross-functional teams (CFT) in an organization of the public sector. Design/methodology/approach A case study helped to characterize several behavior patterns, team structures and respective links with generating innovation in internal processes and public answering contexts. Findings The results highlight that formal-temporary teams present a higher capacity to generate incremental innovation in products, whereas permanent-informal teams have a higher capacity to generate innovation in the internal processes and public answering contexts. Research limitations/implications The limitations of this research relate to the fact that this is a single case study, and although it is an important case to examine innovation and CFTs, by its very nature, it is not possible to extend and generalize the obtained data to other organizations. The evaluation of its propositions was merely qualitative, and future research is needed to validate its characteristics. Practical implications Several settings of CFTs are presented, as well as their ability to generate different types of innovation, such as the computerization of documents, petitions and papers, which decreases the time to answer the taxpayer. Moreover, CFTs can help to create products, such as computer programs that can be used not only locally but also in several public organizations related to tax management. Originality/value The field research provides the perceptions of the respondents regarding CFT characteristics that can lead to specific types of innovation, as well as the types of products or services that can be generated by these processes.

scholarly journals Time required to move cash through slot machines

2018 ◽  
Vol 21 (3) ◽  
pp. 376-384 ◽  
Author(s):  
Karen Kelly ◽  
Carl James Schwarz ◽  
Ricardo Gomez ◽  
Kim Marsh
Keyword(s):  
British Columbia ◽  
Slot Machines ◽  
Content Type ◽  
The Public ◽  
Average Value ◽  
The Mean ◽  
Time Required ◽  
Rest Breaks ◽  
Mean Time ◽  
Practical Implications

Purpose The purpose of this paper is to present an empirical study on the time needed to load and disburse cash using bill validators on slot machines and stand-alone cash dispensers in casinos in British Columbia under a Ticket In Ticket Out (TITO) system. Design/methodology/approach Testing took place over two days, using 18 machines. The results were extrapolated to estimate the approximate time required to process $1,000,000 with different average bill amounts in the cash mix and three different bill validator machines in common use. The average value per bill using the cash mix used by the public in the casino was $33.11 [standard error (SE) $2.11]. Findings The mean time/accepted note ranged from 4.12 to 9.65 s, depending on bill validator type. This implies that the time needed to load $1,000,000 onto credit slips using bill validators on slot machines ranges from 35 to 81 h, excluding rest breaks and other breaks. The time needed to redeem $1,000,000 is estimated to be 3 h. Practical/implications The implications of these finding for illicit actors to successfully launder large amounts of cash are discussed. Given the time needed to physically handle the cash, and other control systems currently in use in casinos in British Columbia, processing large amounts of cash using bill validators on slot machines would require a highly organized team that would find it difficult to elude detection. Originality/value The trial results provide a baseline estimate to be used going forward when investigating or proposing money laundering methodologies that include slot machines.

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