Accounting, regulation and profitability: the case of PFI hospital refinancing

Steven Toms, Matthias Beck, Darinka Asenova

Research output: Contribution to journal › Article

Abstract

The refinancing of PFI (Private Finance Initiative) projects represents one of the most contentious aspects of Public Private Partnerships (PPPs) in the UK. The negative publicity associated with UK PFI refinancing deals is associated with several factors, including, evidence of massive private sector profit making, the failure of private sector financiers to share refinancing profits and, lastly, private sector frustration of adequate regulatory intervention in this area. Utilising a dynamic model of capital market and state interaction, this paper explains these outcomes as a function of effective private sector lobbying of bureaucratic state agencies to alter the structure of accounting, accountability and regulation with the goal of securing favourable profit and risk outcomes.

Original languageEnglish
Pages (from-to)668–681
Number of pages14
JournalCritical Perspectives on Accounting
Volume22
Issue number7
DOIs
Publication statusPublished - Oct 2011

Fingerprint

profitability
private sector
finance
regulation
profit
capital market
public private partnership
publicity
frustration
responsibility
Private finance initiative
Accounting regulation
Private sector
Profitability
Refinancing
interaction
evidence
Profit

Keywords

  • private finance initiative
  • profit
  • public private partnerships
  • PFI
  • accounting

Cite this

Toms, Steven ; Beck, Matthias ; Asenova, Darinka. / Accounting, regulation and profitability: the case of PFI hospital refinancing. In: Critical Perspectives on Accounting. 2011 ; Vol. 22, No. 7. pp. 668–681.
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Toms, S, Beck, M & Asenova, D 2011, 'Accounting, regulation and profitability: the case of PFI hospital refinancing', Critical Perspectives on Accounting, vol. 22, no. 7, pp. 668–681. https://doi.org/10.1016/j.cpa.2011.01.010

Accounting, regulation and profitability: the case of PFI hospital refinancing. / Toms, Steven; Beck, Matthias; Asenova, Darinka.

In: Critical Perspectives on Accounting, Vol. 22, No. 7, 10.2011, p. 668–681.

Research output: Contribution to journal › Article

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Toms S, Beck M, Asenova D. Accounting, regulation and profitability: the case of PFI hospital refinancing. Critical Perspectives on Accounting. 2011 Oct;22(7):668–681. https://doi.org/10.1016/j.cpa.2011.01.010

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