Journal of Economics and Business 79 (2015) 82–99 Contents lists available at ScienceDirect Journal of Economics and Business Firm-level conditions to engage in public-private partnerships: What can we learn? Ana Isabel Lopes a,∗ , Tânia Teixeira Caetano b a Instituto Universitário de Lisboa (ISCTE-IUL) ISCTE-IUL Instituto Universit´ ario de Lisboa, Business Research Unit (UNIDE/BRU), Av. das Forc ¸ as Armadas Ed.II, Office D506 1649-026 Lisboa, Portugal b ISCTE-IUL Instituto Universit´ ario de Lisboa Av. das Forc ¸ as Armadas Ed.II, 1649-026 Lisboa, Portugal a r t i c l e i n f o Article history: Received 11 June 2014 Received in revised form 5 January 2015 Accepted 8 January 2015 Available online 28 January 2015 Keywords: Public–private partnerships Concessions IFRIC 12 Portugal JEL classification: M21 M41 M48 a b s t r a c t This research examines the firm-level conditions of Portuguese listed companies to be engaged in Public Private Partnerships - Service Concessions Arrangements (PPP/SCA). Based on accounting standards and other legislation regarding PPP/SCAs, a set of firm’s characteristics was tested in order to find determinants for that engagement. Through empirical evidence it is suggested that larger firms and relative higher leveraged firms attract more PPP/SCA projects. The results also imply that when the most important seg- ment report is coincident with the primary line of business industry, firms have more probability of being engaged with a PPP/SCA. Find- ings also show that profitability and financing costs (as a proxy for risk) are not robust determinant for attract a PPP/SCA. This paper adds to the scarce (but in a growing phase) literature on the financial reporting of service concessions arrangements, contributing to a better understanding of the extent and conditions behind PPP/SCA. © 2015 Elsevier Inc. All rights reserved. 1. Introduction The Public Private Partnerships 1 (PPP) model represents a measure that sovereign states can use to respond to their financial limitations and to provide public services. Several governments have ∗ Corresponding author. Tel.: +351937200064. E-mail addresses: ana.isabel.lopes@iscte.pt (A.I. Lopes), aidls@iscte.pt (T. T. Caetano). 1 Public-Private Partnerships, also known as “PPPs”, are “agreements between the government and one or more private partners (which may include operators and financers) according to which the private partners deliver the service in such a manner that the service delivery objectives of the government are aligned with the profit objectives of the private partners http://dx.doi.org/10.1016/j.jeconbus.2015.01.001 0148-6195/© 2015 Elsevier Inc. All rights reserved.