Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries?
The main purpose of this paper is to describe the evolution of the financing structure of regulated privatized utilities and transport companies. To do so, the authors rely on a sample of 121 utilities distributed over 16 countries, and 23 transport infrastructure operators and 23 transport services operators distributed over 23 countries. They show that leverage rates vary significantly across sectors, with the highest rates observed in transport and the lowest in water. Moreover, the authors also show that the 1997 Asia crisis led operators to adjust their financial structure differently in different regions. Overall, the evidence they present shows that debt is replacing equity in financing the investment needs of utilities and transport services in developing countries. These results raise some questions as to whether the regulator's mandate should be expanded to monitor the financial structure of companies and as to whether the international community should make a stronger commitment to more transparent regulatory accounting systems.
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dig-okr-10986141612021-04-23T14:03:21Z Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries? da Silva, Luis Correia Estache, Antonio Järvelä, Sakari ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES ACCOUNTING SYSTEMS AIRPORTS ASSETS BALANCE OF PAYMENTS BANKS BONDS BOOK VALUE BORROWING CAPITAL MARKETS CAPITALIZATION COST OF CAPITAL COUNTRIES DEBT DEBT FINANCING DEBT SERVICE DEVELOPED DEVELOPED COUNTRIES ELECTRICITY EQUITY CAPITAL FINANCIAL RATIOS FINANCIAL STRUCTURE FOREIGN EXCHANGE GAAP INTEREST RATES INVESTMENT EXPENDITURES LEVERAGE MARKET VALUE MATURITIES MATURITY PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROJECT FINANCE PUBLIC DEBT PUBLIC SERVICES RATING AGENCIES SHARE CAPITAL TECHNOLOGICAL PROGRESS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT UTILITIES PRIVATIZATION OF INFRASTRUCTURE BONDS FINANCIAL & PRIVATE SECTOR DEVELOPMENT TRANSPORT UTILITIES EQUITY DEBT EQUITY RATIOS DEBT EQUITY ACCOUNTING SYSTEMS The main purpose of this paper is to describe the evolution of the financing structure of regulated privatized utilities and transport companies. To do so, the authors rely on a sample of 121 utilities distributed over 16 countries, and 23 transport infrastructure operators and 23 transport services operators distributed over 23 countries. They show that leverage rates vary significantly across sectors, with the highest rates observed in transport and the lowest in water. Moreover, the authors also show that the 1997 Asia crisis led operators to adjust their financial structure differently in different regions. Overall, the evidence they present shows that debt is replacing equity in financing the investment needs of utilities and transport services in developing countries. These results raise some questions as to whether the regulator's mandate should be expanded to monitor the financial structure of companies and as to whether the international community should make a stronger commitment to more transparent regulatory accounting systems. 2013-06-25T13:57:06Z 2013-06-25T13:57:06Z 2004-08 http://documents.worldbank.org/curated/en/2004/08/5069731/debt-replacing-equity-regulated-privatized-infrastructure-developing-countries http://hdl.handle.net/10986/14161 English en_US Policy Research Working Paper;No.3374 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Asia |
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Banco Mundial |
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DSpace |
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Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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dig-okr |
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biblioteca |
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America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES ACCOUNTING SYSTEMS AIRPORTS ASSETS BALANCE OF PAYMENTS BANKS BONDS BOOK VALUE BORROWING CAPITAL MARKETS CAPITALIZATION COST OF CAPITAL COUNTRIES DEBT DEBT FINANCING DEBT SERVICE DEVELOPED DEVELOPED COUNTRIES ELECTRICITY EQUITY CAPITAL FINANCIAL RATIOS FINANCIAL STRUCTURE FOREIGN EXCHANGE GAAP INTEREST RATES INVESTMENT EXPENDITURES LEVERAGE MARKET VALUE MATURITIES MATURITY PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROJECT FINANCE PUBLIC DEBT PUBLIC SERVICES RATING AGENCIES SHARE CAPITAL TECHNOLOGICAL PROGRESS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT UTILITIES PRIVATIZATION OF INFRASTRUCTURE BONDS FINANCIAL & PRIVATE SECTOR DEVELOPMENT TRANSPORT UTILITIES EQUITY DEBT EQUITY RATIOS DEBT EQUITY ACCOUNTING SYSTEMS ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES ACCOUNTING SYSTEMS AIRPORTS ASSETS BALANCE OF PAYMENTS BANKS BONDS BOOK VALUE BORROWING CAPITAL MARKETS CAPITALIZATION COST OF CAPITAL COUNTRIES DEBT DEBT FINANCING DEBT SERVICE DEVELOPED DEVELOPED COUNTRIES ELECTRICITY EQUITY CAPITAL FINANCIAL RATIOS FINANCIAL STRUCTURE FOREIGN EXCHANGE GAAP INTEREST RATES INVESTMENT EXPENDITURES LEVERAGE MARKET VALUE MATURITIES MATURITY PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROJECT FINANCE PUBLIC DEBT PUBLIC SERVICES RATING AGENCIES SHARE CAPITAL TECHNOLOGICAL PROGRESS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT UTILITIES PRIVATIZATION OF INFRASTRUCTURE BONDS FINANCIAL & PRIVATE SECTOR DEVELOPMENT TRANSPORT UTILITIES EQUITY DEBT EQUITY RATIOS DEBT EQUITY ACCOUNTING SYSTEMS |
| spellingShingle |
ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES ACCOUNTING SYSTEMS AIRPORTS ASSETS BALANCE OF PAYMENTS BANKS BONDS BOOK VALUE BORROWING CAPITAL MARKETS CAPITALIZATION COST OF CAPITAL COUNTRIES DEBT DEBT FINANCING DEBT SERVICE DEVELOPED DEVELOPED COUNTRIES ELECTRICITY EQUITY CAPITAL FINANCIAL RATIOS FINANCIAL STRUCTURE FOREIGN EXCHANGE GAAP INTEREST RATES INVESTMENT EXPENDITURES LEVERAGE MARKET VALUE MATURITIES MATURITY PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROJECT FINANCE PUBLIC DEBT PUBLIC SERVICES RATING AGENCIES SHARE CAPITAL TECHNOLOGICAL PROGRESS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT UTILITIES PRIVATIZATION OF INFRASTRUCTURE BONDS FINANCIAL & PRIVATE SECTOR DEVELOPMENT TRANSPORT UTILITIES EQUITY DEBT EQUITY RATIOS DEBT EQUITY ACCOUNTING SYSTEMS ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES ACCOUNTING SYSTEMS AIRPORTS ASSETS BALANCE OF PAYMENTS BANKS BONDS BOOK VALUE BORROWING CAPITAL MARKETS CAPITALIZATION COST OF CAPITAL COUNTRIES DEBT DEBT FINANCING DEBT SERVICE DEVELOPED DEVELOPED COUNTRIES ELECTRICITY EQUITY CAPITAL FINANCIAL RATIOS FINANCIAL STRUCTURE FOREIGN EXCHANGE GAAP INTEREST RATES INVESTMENT EXPENDITURES LEVERAGE MARKET VALUE MATURITIES MATURITY PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROJECT FINANCE PUBLIC DEBT PUBLIC SERVICES RATING AGENCIES SHARE CAPITAL TECHNOLOGICAL PROGRESS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT UTILITIES PRIVATIZATION OF INFRASTRUCTURE BONDS FINANCIAL & PRIVATE SECTOR DEVELOPMENT TRANSPORT UTILITIES EQUITY DEBT EQUITY RATIOS DEBT EQUITY ACCOUNTING SYSTEMS da Silva, Luis Correia Estache, Antonio Järvelä, Sakari Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries? |
| description |
The main purpose of this paper is to
describe the evolution of the financing structure of
regulated privatized utilities and transport companies. To
do so, the authors rely on a sample of 121 utilities
distributed over 16 countries, and 23 transport
infrastructure operators and 23 transport services operators
distributed over 23 countries. They show that leverage rates
vary significantly across sectors, with the highest rates
observed in transport and the lowest in water. Moreover, the
authors also show that the 1997 Asia crisis led operators to
adjust their financial structure differently in different
regions. Overall, the evidence they present shows that debt
is replacing equity in financing the investment needs of
utilities and transport services in developing countries.
These results raise some questions as to whether the
regulator's mandate should be expanded to monitor the
financial structure of companies and as to whether the
international community should make a stronger commitment to
more transparent regulatory accounting systems. |
| format |
Publications & Research :: Policy Research Working Paper |
| topic_facet |
ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING PRINCIPLES ACCOUNTING SYSTEMS AIRPORTS ASSETS BALANCE OF PAYMENTS BANKS BONDS BOOK VALUE BORROWING CAPITAL MARKETS CAPITALIZATION COST OF CAPITAL COUNTRIES DEBT DEBT FINANCING DEBT SERVICE DEVELOPED DEVELOPED COUNTRIES ELECTRICITY EQUITY CAPITAL FINANCIAL RATIOS FINANCIAL STRUCTURE FOREIGN EXCHANGE GAAP INTEREST RATES INVESTMENT EXPENDITURES LEVERAGE MARKET VALUE MATURITIES MATURITY PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROJECT FINANCE PUBLIC DEBT PUBLIC SERVICES RATING AGENCIES SHARE CAPITAL TECHNOLOGICAL PROGRESS TELECOMMUNICATIONS TRANSACTION COSTS TRANSPORT UTILITIES PRIVATIZATION OF INFRASTRUCTURE BONDS FINANCIAL & PRIVATE SECTOR DEVELOPMENT TRANSPORT UTILITIES EQUITY DEBT EQUITY RATIOS DEBT EQUITY ACCOUNTING SYSTEMS |
| author |
da Silva, Luis Correia Estache, Antonio Järvelä, Sakari |
| author_facet |
da Silva, Luis Correia Estache, Antonio Järvelä, Sakari |
| author_sort |
da Silva, Luis Correia |
| title |
Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries? |
| title_short |
Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries? |
| title_full |
Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries? |
| title_fullStr |
Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries? |
| title_full_unstemmed |
Is Debt Replacing Equity in Regulated Privatized Infrastructure in Developing Countries? |
| title_sort |
is debt replacing equity in regulated privatized infrastructure in developing countries? |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2004-08 |
| url |
http://documents.worldbank.org/curated/en/2004/08/5069731/debt-replacing-equity-regulated-privatized-infrastructure-developing-countries http://hdl.handle.net/10986/14161 |
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