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Baum, C., Kordestani, A., Schäfer, D., Stephan, A. Firms in Green Public Procurement: Financial Strength Indicators’ Impact on Contract Awards and Its Repercussion on Financial Strength. Vierteljahrshefte zur Wirtschaftsforschung, 90(4), 71-92.
Baum, Christopher F.; Kordestani, Arash; Schäfer, Dorothea and Stephan, Andreas "Firms in Green Public Procurement: Financial Strength Indicators’ Impact on Contract Awards and Its Repercussion on Financial Strength" Vierteljahrshefte zur Wirtschaftsforschung 90.4, 2021, 71-92.
Baum, Christopher F./Kordestani, Arash/Schäfer, Dorothea/Stephan, Andreas (2021): Firms in Green Public Procurement: Financial Strength Indicators’ Impact on Contract Awards and Its Repercussion on Financial Strength, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 90, iss. 4, 71-92, [online]


Firms in Green Public Procurement: Financial Strength Indicators’ Impact on Contract Awards and Its Repercussion on Financial Strength

Baum, Christopher F. | Kordestani, Arash | Schäfer, Dorothea | Stephan, Andreas

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 90 (2021), Iss. 4 : pp. 71–92

1 Citations (CrossRef)

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Christopher F. Baum, Boston College

  • Christopher F. Baum is Professor of Economics and Social Work at Boston College, where he presently serves as Chair of the Department of Economics. He is a Research Fellow in the Department of Macroeconomics, German Institute for Economic Research, and an Associate Researcher at the Centre of Excellence for Science and Innovation Studies (CESIS) in Stockholm. He has coauthored several statistical software routines in the Stata language and three books about Stata. He earned the Ph.D. in Economics at the University of Michigan – Ann Arbor. His current research focuses on labor market outcomes of refugee immigrants and several public health topics relating to substance use, environmental impacts on birth outcomes, and mental health impacts of the pandemic.
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Arash Kordestani, Södertörn University

  • Arash Kordestani is Assistant Professor of Logistics at Södertörn University, Stockholm. He received his Ph.D. from Lulea University of Technology, Sweden. He does research in Business Administration field, and in recent years, his main research themes have been shaped around blockchain, circular economy, machine learning, sustainable supply chains, and public procurement.
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Dorothea Schäfer, DIW Berlin & Jönköping University

  • Dorothea Schäfer, Research Director Financial Markets at DIW Berlin and Adjunct Professor at Jönköping University – JIBS (Economics). She achieved her Ph.D. and habilitation at the FU Berlin. Schäfer has been head of various research projects funded e. g. by the German Research Foundation (DFG), the EU Commission and the research arm of the DSGV (German Savings Bank Association). She has published in Journal of International Financial Markets, Institutions & Money, International Journal of Money and Finance, European Journal of Finance, Small Business Economics, Journal of Financial Stability and many other journals. She was an expert for many committees, e. g. the Bundestag’s Committee on Finance. She is Editor-in-Chief of Vierteljahrshefte zur Wirtschaftsforschung and of the Eurasian Economic Review (EAER).
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Andreas Stephan, Linnaeus University

  • Andreas Stephan is Professor of Forest Industrial Economics at Linnaeus University, Sweden; and has been a Professor of Economics and Finance at Jönköping International Business School, Sweden. He graduated with a M.Sc. in Industrial Engineering from Technical University in Berlin and earned a Ph.D. in Economics at Humboldt University Berlin. He previously held positions at the Social Science Research Center Berlin (WZB), at the German Institute for Economic Research (DIW) and at the European University Viadrina. He is a Research Affiliate with CESIS – Centre of Excellence for Science and Innovation Studies at the Royal Institute of Technology in Stockholm. Andreas Stephan’s research interests are related to climate and forest policies, ESG and financial markets, and green investment and finance. He is an appointed Associate Editor for the journal Eurasian Economic Review and Editorial Board Member for the journals Business Strategy and the Environment.
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Cited By

  1. The impact of public procurement on financial barriers to general and green innovation

    Schäfer, Dorothea

    Stephan, Andreas

    Fuhrmeister, Sören

    (2023) [Citations: 0]


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We examine whether the financial strength of companies, in particular, small and medium-sized enterprises (SMEs) is causally linked to the award of a public procurement contract (PP), especially in the environmentally friendly green area (GPP). For this purpose, we build a combined procurement company data set from the Tenders Electronic Daily (TED) and the SME database AMADEUS, which includes ten European countries. First, we apply probit models to investigate whether the probability of winning the public tender depends on the company’s financial strength. We then use the flexpanel DiD approach to investigate the question of whether the award has an impact on the future financial strength of the successful company. On the one hand, we find that a lower equity ratio and a higher short-term debt ratio increase the probability of being successful in a public tender. On the other hand, a success means that the companies can continue to work after the award with a lower equity ratio than comparable companies without an award, regardless of whether the company was successful in a traditional or a green public tender. We conclude from this that the success in a PP is a substitute for a firm’s own financial strength and thus facilitates access to external financing.