Latin–American public financial reporting: recent and future development

In recent years, numerous Latin–American countries have carried out reforms in their public accounting systems, with technical cooperation provided by the U.S. Agency for International Development (USAID). Taking into account the lack of international accounting standards for the public sector, USAID has designed a model termed Integrated Financial Management System for Latin America and the Caribbean (IFMS or SIMAFAL). This model is intended to provide better financial information for governmental decision‐taking as regards the allocation of resources; a further goal is to achieve greater transparency and for a higher degree of responsibility to be accepted for the commitments made and the results of activities undertaken. Important changes are currently taking place on the international public accounting scene and the International Federation of Accountants (IFAC) is pressing for the adoption of a set of international public accounting standards by Latin–American countries. In this article, we compare the level of information included in the year‐end governmental public report in Latin–American countries which have carried out their reforms outside SIMAFAL with that of others which have followed this model. Second, we examine the extent to which the public financial reporting practices recommended by IFAC coincide with those adopted by the above countries. Copyright © 2007 John Wiley & Sons, Ltd.     

Defending popular sovereignty: discursive conflict in French and Swedish parliamentary debates on immigrant voting rights (1968-2017)

ABSTRACT

Through a discourse analysis of French and Swedish legislative debates from 1968 to 2017, this article examines how actors challenge and reinforce dominant ideas about the link between nationality and political rights. We argue that the broader political culture influences which discursive strategies – or ‘frames’ – are more likely to structure parliamentary debates in different national contexts. However, our analysis also shows that legislators sometimes develop new discursive frames in which they reinterpret dominant norms to make them consistent with their views. Through this incremental process of reinterpretation and reformulation of dominant ideas, debates over non-citizen voting rights have chipped away at the link between nationality and political rights. Our findings suggest that initiatives to enfranchise non-citizens trigger lower levels of conflict when they can be framed as a policy tool for immigrant integration rather than as a matter of popular sovereignty.     

Sustainability reporting: How consistency and interdependence in financial and managerial accounting enhance eco-controls

Sustainability reporting requires consistency and interdependency of financial accounting and managerial accounting. Accounting is closely entangled with the eco control (EC) in organisations. The quality of (sustainability) reporting and the disclosures is only as good as the quality and consistency of accounting data captured. Therefore, accounting choices and practises have an important role to play in sustainability reporting. This study explores the mechanism through which accounting informs EC. Through the independent and serial use of two levers, first ‘interdependency’ between financial accounting and management accounting and second, though the use of ‘digitalized information’ as a moderating variable, it is probed as to how EC are shaped. An empirical investigation is undertaken by carefully curating primary data, analysed through partial least squares structural equation modelling technique to inform broader debates in the ‘sustainability reporting’ literature concerning the mechanisms through which EC, are influenced by accounting mechanics, choices and disclosures. Sound EC contributes to sustainability accounting and governance to meet needs of the firms direct and indirect stakeholders without comprising the firm's ability to meet the needs of future stakeholders. The study established that the interdependency between the financial accountants and the management accountants output, mediates the effect of a consistent financial language on EC practises and this effect is independent of the firm size or the industry category. This article brings to the fore, the interplay of FA and MA in informing the environmental controls. The under researched perspective addressed by this study is that EC are highly interdependent with the consistency and comprehensiveness of accounting that informs it which in turn is effected by the cooperation and coordination (interdependency) between FA and MA information providers.     

How to change other people's institutions: discursive entrepreneurship and the boundary object of competition/competitiveness in the German banking sector

Abstract

The paper explores recent public debates about the structure of the financial system in Germany. It pays particular attention to their symbolic-strategic dimension, that is, to attempts by several institutional entrepreneurs to reformulate the criteria of organizational legitimacy, concentrating on the sense-making and legitimization processes involved in institutional persistence or change. The paper discourse-analyses a campaign by institutional entrepreneurs – mainly representatives of commercial banks – who attempted to homogenize the criteria of organizational legitimacy in the German banking sector by questioning the fundamentals of the three-pillar system and the non-commercial banks. Institutional entrepreneurs are understood as discursive entrepreneurs whose actions refer to institutionalized generalizations of value. In the case of the financial sector in Germany, it was the generalized value of competition/competitiveness that served as a discursive device to legitimize the attempts of commercial banks to alter the institutional structure.     

Intersectoral differences in public affairs: the duty of public reporting in public administration

Public reporting is a requirement for public affairs practitioners in public administration because of the democratic context in which government operates. By reporting to the public‐at‐large on agency activities, government agencies contributed to an informed citizenry, the essential foundation of a democracy. For public affairs in business administration and non‐profit administration, public reporting is desirable rather than mandatory. Public reporting was traditionally accomplished indirectly, through news media coverage of government. However, recent research suggests a diminution of interest by the media in fulfilling its role as an instrument of democracy. This means that the public reporting obligation of public affairs professionals in public administration needs to shift to direct reporting, through such products as annual reports, newsletters, TV programmes, Internet websites etc. Copyright © 2002 Henry Stewart Publications.     

The importance of input and output legitimacy in democratic governance: Evidence from a population-based survey experiment in four West European countries

The study of subjective democratic legitimacy from a citizens’ perspective has become an important strand of research in political science. Echoing the well-known distinction between ‘input-oriented’ and ‘output-oriented’ legitimacy, the scientific debate on this topic has coined two opposed views. Some scholars find that citizens have a strong and intrinsic preference for meaningful participation in collective decision making. But others argue, to the contrary, that citizens prefer ‘stealth democracy’ because they care mainly about the substance of decisions, but much less about the procedures leading to them. In this article, citizens’ preferences regarding democratic governance are explored, focusing on their evaluations of a public policy according to criteria related to various legitimacy dimensions, as well as on the (tense) relationship among them. Data from a population-based conjoint experiment conducted in eight metropolitan areas in France, Germany, Switzerland and the United Kingdom is used. By analysing 5,000 respondents’ preferences for different governance arrangements, which were randomly varied with respect to their input, throughput and output quality as well as their scope of authority, light is shed on the relative importance of different aspects of democratic governance. It is found, first, that output evaluations are the most important driver for citizens’ choice of a governance arrangement; second, consistent positive effects of criteria of input and throughput legitimacy that operate largely independent of output evaluations can be discerned; and third, democratic input, but not democratic throughput, is considered somewhat more important when a governance body holds a high level of formal authority. These findings run counter to a central tenet of the ‘stealth democracy’ argument. While they indeed suggest that political actors and institutions can gain legitimacy primarily through the provision of ‘good output’, citizens’ demand for input and throughput do not seem to be conditioned by the quality of output as advocates of stealth democratic theory suggest. Democratic input and throughput remain important secondary features of democratic governance.     

In search of enduring information effects: Evidence from a ten-week panel experiment

The extent to which the electorate uses issue information to update their candidate evaluations over the course of political campaigns has often raised questions about citizen competence. Using a ten-week panel experiment designed to capture the low-information context of most congressional races this study contributes to our understanding of when and by what processes issue information produces enduring effects. Findings reveal that when voters need to assess an ideologically moderate candidate, they rely less on partisan cues but instead of storing issue information in long-term memory – either via a memory-based or on-line process – considerations in short-term memory remained one of the most powerful predictors of candidate evaluation, particularly when new issue information deviated from partisan norms.     

Effect of financial sector development and FDI inflow on employment rate in South Asia: New empirical evidence from ARDL approach

The current analysis aims to explore the empirical nexus between financial development, foreign direct investment (FDI) inflow, and employment rate. To attain this aim, we collect 30 years of annual data over the period 1990 to 2019 from South Asian economies and employ the autoregressive dynamic least square (ARDL) model for regression analysis. The implication of the ARDL model was subject to the mixed stationarity status of the series as assessed by unit root testing. The robustness of the analysis was checked by employing the fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models. The statistical analysis infers that both financial development and FDI inflow enhance the employment rate in the South Asia region. In addition, the empirical analysis infers that the gross capital formation, economic growth, and export volume have a positive while the population growth rate has a negative effect on the employment rate. The impact of underlying explanatory variables was found significant only in long run. The estimated coefficient values in the case of FMOLS and DOLS models support the direction of the relationship between explanatory variables and employment rate, implying the robustness of the analysis. The findings of the current analysis can be used to devise efficient economic policies to cope with the encroaching issue of unemployment in the South Asia region. This study offers the robustness to existing literature and complements the literature by exploring the underlying arrangement of study to the whole South Asia group.     

The Nature and Incidence of Workgroup Innovation in the Australian Public Sector: Evidence from the Australian 2011 State of the Service Survey

Using data from a nationally representative survey of all Australian Government employees, we explore the nature of innovation implemented at the workgroup level and assess the multi‐dimensionality of the workgroup's ‘most significant innovation’ (MSI). Of the 10222 survey respondents, 48% reported at least one innovation implemented by their workgroup, with an innovation more commonly reported with an increase in the respondent's age, seniority, and service experience; among men and university graduates. The results reveal that 54% of the reported MSIs incorporate between two and five dimensions of innovation types (policy, service, service delivery, administrative/organizational, and conceptual), and most of these dimensions reinforce each other. Different dimensions of the MSI draw on different sources of ideas (with senior leaders having the broadest impact), face different ‘revealed’ barriers, require different levels of workplace creativity, and produce different beneficial effects. Our findings help strengthen an understanding of the influencing factors and the effects of multi‐dimensional public sector innovations.     

Organization and Reporting of Public Financial Accounts: Insights and Policy Implications from the Singapore Budget

This paper analyses the Singapore government budget's organization and reporting structure, and draws lessons and policy implications for improving public financial management practices. The paper finds that Singapore's fiscal marksmanship record has been poor with consistent underestimates of revenue and overestimates of expenditure. Second, subtle divergences from international reporting standards limit the information available and constrain the budget's analytical usefulness in international comparisons. Third, current reporting conventions of the budget fail to provide an adequate representation of the government's fiscal position. Fourth, revised estimates of budgetary balances in line with international reporting standards show a considerable increase in the fiscal space available. The policy implications of these findings are discussed, as well as some reporting changes which can help improve the fiscal marksmanship record, increase public sector transparency and accountability, and facilitate better quality discourse among all stakeholders on public financial management.     

Schumpeter's economic theory and the dynamic accounting view of the firm: neglected pages from the Theory of Economic Development

Abstract

The first English translation of some of Schumpeter's (1926) pages of the Theory of Economic Development is presented. These neglected pages are remarkable because they significantly add to Schumpeter's masterpiece on a number of issues concerned with accounting, law and economics of the firm. They show that Schumpeter considered understanding the firm, together with innovation, as important scientific problems. Schumpeter doubts the explanatory value of proprietary entrepreneurship and provides an early justification of the dynamic entity view of business activity generated by the firm as a becoming concern. He discusses its implications for understanding issues of economic organization and corporate governance, and suggests some theoretical insights concerning business capital and money under conditions of real dynamics and complexity. The doors opened by Schumpeter indicate that money and accounting are fundamentally coupled as complementary institutions in framing and shaping the economic and monetary process of the firm as an enterprise entity.     

Determinants and Evaluation of Local Energy‐Efficiency Initiatives from the American Recovery and Reinvestment Act

This article examines variation in local‐level energy‐efficiency grants and corresponding initiatives from the American Reinvestment and Recovery Act (ARRA) in the United States. The analysis is based upon a hurdle model of counts of energy‐efficiency grants received by 348 local governments that received these grants from 2009 to 2013, as well as 348 matched local governments that did not receive such funds. City‐level characteristics including amount of federal financial support, per capita income, signaling of preferences for sustainability policies, manufacturing, and political influences are shown to be empirically important determinants of variation in local energy‐efficiency initiatives. The evidence suggests that all else held equal, the $21.8 billion in ARRA funds expended with the intent of increasing local energy‐efficiency programs and policies successfully led to this end.     

Confidence in an election authority and satisfaction with democracy: Evidence from a quasi-natural experiment of a failed election in Sweden

Contemporary research on electoral integrity has focused on the functioning, evaluation, and legitimacy of electoral processes in emerging democracies. By contrast, this study investigates whether a failed election in a well-established democracy can affect individuals' evaluations of the electoral management body, the Election Authority, and whether those evaluations affect satisfaction with democracy. Using the case of a Swedish regional election in 2010 that had to be rerun due to procedural mistakes in the vote handling, we found that, in the short term, individuals’ confidence in the Election Authority was reduced after it was announced that the election had to be rerun because of the mistakes. Subsequently, this decreased confidence was strongly associated with less satisfaction with democracy at the regional and national level. As good news for the authority, after a successful rerun election, confidence rebounded to the levels prior to the failed election.     

Policy Adoption and Policy Intensity: Emergence of Climate Adaptation Planning in U.S. States

The United States is experiencing growing impacts of climate change but currently receives a limited policy response from its national leadership. Within this policy void, many state governments are stepping up and taking action on adaptation planning. Yet we know little about why some states adopt State Adaptation Plans (SAPs), while others do not. This article investigates factors that predict the emergence of SAPs, both in terms of policy adoption and policy intensity (goal ambitiousness). Applying the diffusion of innovation theory, I consider the relative influence of internal state characteristics, regional pressures, and test for conditional effects between government ideologies and severity of the problem. The results show interesting differences between predictors that influence policy adoption and ambitiousness. States are more motivated to adopt a policy when faced with greater climate vulnerability, have more liberal citizenry, and where governments have crossed policy hurdles by previously passing mitigation plans. The intensity of policies and goal setting, moreover, is more likely to be driven by interest group politics and diffuse through policy learning or sharing information among neighboring states in Environmental Protection Agency regions. These findings support an emerging scholarship that uses more complex dependent variables in policy analysis. These variables have the potential to differentiate symbolic from substantive policies and capture finer information about predictors of importance.