Publication:
Smoke and Mirrors: Infrastructure State-Owned Enterprises and Fiscal Risks

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dc.contributor.authorMusacchio, Aldo
dc.contributor.authorHerrera Dappe, Matias
dc.contributor.authorPan, Carolina
dc.contributor.authorSemikolenova, Yadviga Viktorivna
dc.contributor.authorTurkgulu, Burak
dc.contributor.authorBarboza, Jonathan
dc.date.accessioned2022-03-17T17:53:02Z
dc.date.available2022-03-17T17:53:02Z
dc.date.issued2022-03-15
dc.description.abstractInfrastructure is critical to economic development. When infrastructure companies are owned and operated by the government, however, they create significant sources of fiscal risk. These fiscal risks can be sizable, but they are often preventable with proper planning, risk assessment, and strict rules and procedures for corporate and fiscal governance. This paper examines fiscal risk stemming from state-owned enterprises (SOEs) in the infrastructure sector in a sample of 135 firms in 19 countries from an original database of SOE financials for 2009–18. The paper develops a typology of fiscal risks and their determinants, builds new measures of fiscal injections to SOEs, and documents them using the novel database. The results show that governments support SOEs through a remarkably wide range of fiscal instruments. The fiscal cost of supporting infrastructure SOEs is usually below 1 percent of gross domestic product. Support is more prevalent and frequent than previously thought. The findings show that fiscal risk stems not only from “tail risk,” but also from the everyday operation of infrastructure SOEs. The paper calculates the Altman Z” score (a measure of default risk) and shows that it can be used to forecast the need for fiscal injections in SOEs.en
dc.identifierhttp://documents.worldbank.org/curated/en/256841647366128576/Smoke-and-Mirrors-Infrastructure-State-Owned-Enterprises-and-Fiscal-Risks
dc.identifier.doi10.1596/1813-9450-9970
dc.identifier.urihttps://hdl.handle.net/10986/37158
dc.languageEnglish
dc.publisherWashington, DC: World Bank
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectSTATE-OWNED ENTERPRISE
dc.subjectSTATE-OWNED BANKS
dc.subjectMARKET VALUE OF EQUITY
dc.subjectCONTINGENT LIABILITY
dc.subjectACCESS TO EQUITY
dc.subjectGOVERNMENT BUDGET MANAGEMENT
dc.titleSmoke and Mirrorsen
dc.title.subtitleInfrastructure State-Owned Enterprises and Fiscal Risksen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2022-03-15
okr.date.lastmodified2022-03-15T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/256841647366128576/Smoke-and-Mirrors-Infrastructure-State-Owned-Enterprises-and-Fiscal-Risks
okr.guid256841647366128576
okr.identifier.doi10.1596/1813-9450-9970
okr.identifier.externaldocumentum090224b088d2ceac_1_0
okr.identifier.internaldocumentum33758962
okr.identifier.reportWPS9970
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/256841647366128576/pdf/Smoke-and-Mirrors-Infrastructure-State-Owned-Enterprises-and-Fiscal-Risks.pdfen
okr.topicRailways Transport
okr.topicTransport Services
okr.topicEconomic Adjustment and Lending
okr.topicMacro-Fiscal Policy
okr.topicPublic Sector Economics
okr.topicPublic Finance Decentralization and Poverty Reduction
okr.topicDe Facto Governments
okr.topicState Owned Enterprise Reform
okr.topicEconomics and Finance of Public Institution Development
okr.topicPublic Sector Administrative and Civil Service Reform
okr.topicPublic Sector Administrative and Civil Service Reform
okr.topicDemocratic Government
okr.topicTransport
okr.topicMacroeconomics and Economic Growth
okr.topicPublic Sector Development
okr.topicGovernance
okr.unitITRGK - Global Knowledge (ITRGK)
relation.isAuthorOfPublicatione263ad32-282e-5617-9d86-9c19af771906
relation.isAuthorOfPublication.latestForDiscoverye263ad32-282e-5617-9d86-9c19af771906
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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