Risk Factor Empirical Research of PPP Projects Based on Factor Analysis Method

Hang Yin^1,2, Yuan-Fu Li^2,3, Dong-Mei Zhao¹

¹School of Economics and Management, Southwest Jiaotong University, Chengdu, China.
²Key Laboratory of High-speed Railway Engineering, Education Ministry of China, Chengdu, China.
³School of Civil Engineering, Southwest Jiaotong University, Chengdu, China.

DOI: 10.4236/ajibm.2015.56038                

Abstract

As an innovative investment and financing system of urbanization and the key to the local financing platform to resolve the debt risk, PPP projects have great significance to the current Chinese economy. At present, domestic PPP projects lack of benefit sharing standard and the mechanism of risk-sharing and risk factor analysis is the premise of risk-sharing. Adopting the raw data of major risk factors by questionnaire investigation from a key domestic PPP project, and using SPSS and factor analysis method to do an empirical test, a financing risk index system is built. The results of the study also reveal that financing risk factors are the most important ones to a particular PPP project.

Keywords

PPP Projects, Risk Factors Analysis, Factor Analysis Method

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	Chan, K.W. (2014) China’s Urbanization 2020: A New Blueprint and Direction. Eurasian Geography and Economics, 55, 1-9.
[2]	Li, K.-Q. (2014) Government Work Report—Key Work in 2014. Contemporary Social Vision, 3, 2-3.
[3]	Bing, L., Akintoye, A., Edwards, P.J., et al. (2005) The Allocation of Risk in PPP/PFI Construction Projects in the UK. International Journal of Project Management, 23, 25-35. http://dx.doi.org/10.1016/j.ijproman.2004.04.006
[4]	Daube, D., Vollrath, S. and Alfen, H.W. (2008) A Comparison of Project Finance and the Forfeiting Model as Financing Forms for PPP Projects in Germany. International Journal of Project Management, 26, 376-387. http://dx.doi.org/10.1016/j.ijproman.2007.07.001
[5]	Liu, X.P. and Wang, S.Q. (2006) Risk Allocation Principles and a Framework for Risk Allocation of PPP. Construction Economy, 280, 59-63.
[6]	Cong, H., Zhang, Y. and Ding, J. (2007) Research on Application of PPP Mode in Subway Project Financing. Construction Management Modernization, 10, 41-43.
[7]	Allen, D.R. and Wilburn, M. (2002) Linking Customer and Employee Satisfaction to the Bottom Line. American Society for Quality, Milwaukee.
[8]	Hatcher, L. and O’Rourke, N. (2014) A Step-by-Step Approach to Using SAS for Factor Analysis and Structural Equation Modeling. SAS Institute, Cary.