Is there scope for a new project bond market in Europe? A promising opportunity for promoting transnational infrastructure

La Unión Europea acaba de lanzar una iniciativa para fomentar Participaciones Público Privadas (PPPs) mediante bonos de proyecto más atractivos a inversores institucionales para promover proyectos transeuropeos. Esto se logra a través de mecanismos de mejora crediticia como garantías de liquidez o tramos de deuda subordinada facilitados por el Banco Europeo de Inversiones. Esta iniciativa pretende evitar los problemas de liquidez experimentados actualmente por bancos comerciales en Europa para financiar megaproyectos. En este artículo exploramos las ventajas e inconvenientes de esta iniciativa para promover redes de infraestructuras transnacionales en Europa, y analizamos su aplicabilidad a otras áreas como Latino-América. The European Union recently launched an initiative to foster Public Private Partnerships (PPPs) for delivering Trans-European projects by making long-term project-bonds more appealing to institutional investors. This is achieved through credit-enhancement mechanisms such as partial stand-by liquidity guarantees, or layers of subordinated debt provided by the European Investment Bank. This initiative intends to circumvent the liquidity problems currently endured by commercial banks in Europe to fund megaprojects. In this paper we explore the advantages and drawbacks of this initiative for promoting transnational infrastructure networks in Europe, and analyse its applicability to other economic areas such as Latin America.

The impact of institutional environment and cultural context in the four different approaches to social enterprise

This article analyzes the characteristics of four different social enterprise schools of though (social economy, earned-income school in developed countries, earned-income in emerging countries, and social innovation) and the influence of the contextual elements (cultural, political, economic and social) on their configuration. This article draws on the qualitative discussions of social enterprise in different regions of the world. This paper is intended to contribute to the field of social enterprise by broadening the understanding of the influence of environment and institutions on the emergence of social enterprise.

Return of Equity Issues in the Spanish Stock Market from the Investor’s Perspective, during the 1997-2012 Period

Is it profitable for an investor, from a risk-return perspective, to acquire a stake in a quoted company when a capital increase is announced? This paper analyses the return obtained from the investment in equity issues with cash contribution and pre-emptive rights, aimed at funding corporate activities: acquisitions, investments in new facilities and/or strengthening the balance sheet of the companies undertaking the equity issue. During the 16 years covered by the study, the results show a negative average excess risk-adjusted return of almost 5%, from the moment that the equity offer is announced until the completion of the preferential subscription period. To obtain this excess return, the difference between the nominal Internal Rate of Return (IRR) and the expected return, using the CAPM, is computed for each equity issue. The intention behind this method is to eliminate the effects of time and any other possible effect on the stock price during the period of the analysis.The results from this article are consistent with the Pecking Order theory for the Spanish Stock Market also six months after the preferential subscription period. However, there is a positive return after three months.

A governação de territórios metropolitanos. Contexto institucional e de planeamento nas regiões de Madrid, Barcelona, Paris e Lisboa / The regional metropolitan governance. Institutional mark and planning in Madrid, Barcelona, Paris and Lisbon

Resumo Em resposta aos desafios atuais de muitas grandes cidades, o contexto institucional e o planeamento territorial formam dimensões para melhorar a governação metropolitana. No quadro das regiões capitais do sudoeste europeu, quais poderão ser as inovações e diferenças nos seus modelos e processos em curso? Este artigo propõe uma investigação aplicada para apresentar a análise da governação metropolitana. Através do método de estudos de caso em perspectiva comparada, vários elementos e entrevistas são ponderados qualitativamente nas regiões de Madrid, Barcelona, Paris e Lisboa. As conclusões encontram uma tendência para o equilíbrio entre os esforços dessas duas dimensões da governação territorial metropolitana, não impedindo registrar os seus diferentes percursos: por exemplo Ile-de-France desenvolveu boas iniciativas em matéria de planeamento, que então pedem alguns ajustamentos no quadro político, enquanto Madrid teve “menos actividade” nos últimos anos, em resultado da sua grande estabilidade institucional. A região de Lisboa permanece talvez numa “posição intermédia”, com uma dinâmica de evolução pouco previsível. Mas de acordo com este argumento, admite-se que os seus processos podem levar a melhorias graduais no sistema de governação, com o seu próprio percurso, implementando acções que devem respeitar, em particular, a geografia do território. Abstract Addressing the running challenges of several greater cities, the institutional mark and regional planning are dimensions for improving metropolitan governance. Regarding the southwest European capital regions, what can be the innovations and differences in their currently processes and models? This paper proposes an applied framework to present the metropolitan governance analysis. Through a comparative case study methodology, various elements and interviews are qualitatively measured in the regions of Madrid, Barcelona, Paris and Lisbon. The conclusions find a tendency to balance between the efforts on those two regional metropolitan governance dimensions, which does not prevent to register their different paths: for example Ile-de-France has developed good initiatives in terms of planning, which then require some adjustments in the political mark, while Madrid had in recent years “less activity”, in result of his institutional stability. The Lisbon region maybe stays in an “intermediate position” with a dynamic evolution that is difficult to predict. But according to that argument, it’s possible to admit that his processes can gradually lead to small improvements in his governance system, with his own path, implementing actions that must respect, in particularly, the geography of the territory.