Do Accrual Numbers Really Affect the Financial Market? An Empirical Analysis of ESA Accounts Across the EU

The adoption of a full accrual framework in the public sector is differentiated country by country both for budgeting and for reporting phases. The purpose of this article is to address the following broader research question: How do accrual numbers affect the financial markets? The 10-year average interest rate on sovereign bonds across the European Union is used as a dependent variable. The results of the research show an unclear relation among the variables investigated. Given this evidence, an alignment between micro- and macroaccounting rules could be pursued. We argue the suitability of the Australian experience in this sense.     

Public-Sector Consolidated Financial Statements: An Analysis of the Comment Letters on IPSASB’s Exposure Draft No. 49

Public sector consolidated financial statements can be drafted according to different approaches, especially the “control approach” or “budgetary perspective.” Considering the growing importance of the International Public Sector Accounting Standards (IPSAS) in the international scenario, the aim of the article is to investigate these approaches through an analysis of the comment letters submitted to the Exposure Draft no. 49, which will replace the current IPSAS 6. The main finding concerns the acceptance of the key role played by the control approach, even though it needs to be better specified, in order to take into account the public sector characteristics.     

Perhaps this time it's different: ideas and interests in shaping international responses to financial crises

The experience of the recent two decades of financial crises shows that donor countries and international financial institutions (IFIs) can respond to a crisis in a peripheral open economy by either of two crisis management strategies: either they can impose harsh conditionality to fix the domestic economy and prevent future moral hazard problems, or they can provide last-resort credit to restore market confidence. In some cases, the crisis management strategy changes as the crisis evolves. What are the factors that determine the choice of key donor countries and IFIs? This article traces the processes by which the USA and the International Monetary Fund designed the crisis management strategy in respect to the Asian crisis, and how Germany and the European Central Bank designed the response to the eurozone crisis, in order to understand how ideas regarding the causes and solutions of a financial crisis interact with the interests of key donor countries. The article argues that in both cases ideas and interests are mutually constituted, but in each case the mechanism that linked ideas and interests was different: whereas in the Asian case US interests led to policy innovation and experimentation and to a change in the crisis management strategy, in the European case ideas played a greater role in shaping German interests. The article explains this difference on the basis of the lessons learned by IFIs from the Asian crisis, which were then implemented in the eurozone case.     

NPM Reforms in Napoleonic Countries: A Comparative Study of Management Accounting Innovations in Greek and Italian Municipalities

This is a comparative study of the rationale and effects of management accounting innovations in Greek and Italian municipalities, as part of the NPM reform in the public sector. This article aims to understand the extent of adoption of accounting innovations in Greek and Italian municipalities, and the factors affecting the specific techniques in use. The study reports on a survey based on medium-sized and large Italian and Greek municipalities, targeted at public municipalities’ accountants, the users of accounting techniques. The study identifies the intended purposes of NPM reform and, particularly, management accounting innovations, analyzes a set of factors that affect the implementation of management accounting technologies, and discusses determinants and features of such innovation on a comparative perspective.     

Quality Management in Public-Sector Organizations: Evidence from Six EU Countries

Although there is considerable evidence for the hypothesis that an efficient use of management techniques is the key to a good public service delivery, a lot of studies come to the conclusion that there is only partial, reluctant implementation or even a general lack of the use of such techniques by public managers. This paper examines the determinants for the use of quality management techniques in public sector organizations from six EU countries. It turns out that especially more organizational autonomy and result control appear to be of importance while, surprisingly, the combination of these variables leads to negative results.     

Agenda and Public Policy: Evidence From Chile

Based on Kingdon’s model and the punctuated equilibrium theory, this article analyzes the process of four Chilean public policies from 1990 to 2013. Evidence was collected from 205 interviews, official documents, 3,905 press clippings, and academic literature. Grounded theory was employed to analyze interviews. The analysis shows a tacit alliance between power and expert knowledge, that presidential motivation seems to be a key factor for an idea to be included in government agenda, that Chile’s policy-making process is rather elitist, and that its characteristics coincide with the “inside access model of agenda building.”     

Is Managerial Work in the Public and Private Sectors Really “Different”? A Comparative Study of Managerial Work Activities

This article aims to discern the extent to which managerial work is similar and different in the public and private sectors. Using propositions and structured categories for describing what managers do, this article compares results of an observational study conducted in the Canadian public sector with similar studies from the private sector. Through a comparison of work type, hours, location, activities, and contact patterns, this research finds few differences in managerial work activities between the two sectors, despite contextual and situational differences. Possible explanations are explored, implications of the findings are discussed, and future research directions are proposed.     

How to Make the Mix Matter: A Case Study of Post-Transformational Leadership in Hybrid Public Management

The purpose of this article is to explain how public managers can influence the mix of institutional logics in a process of organizational change. To do this, the concept of post-transformational leadership is related to institutional logics. The article is based on a case study of the Danish Crime Prevention Council. The study shows how post-transformative leaders are urged to move from strategies of collaboration to strategies of manipulation, hypocrisy, and the hijacking of institutional logics.     

Financial Health in Australian Local Government: The Application of a Funding Assessment Model to Brisbane and Sydney City Councils

Local government financial viability measurement in an accrual budgeting environment poses complex challenges. Financial measures frequently generate conflicting results. A rating scale to assess financial management, constructed originally for South African municipalities (Dollery & Graves, 2009), represents a useful tool to analyze financial health trends. Applying a “Likert-like” scale to financial performance measures to assess “funding compliance”, the model in this article assists municipalities to avoid financial difficulties. To demonstrate the applicability of this model, we apply the model to the Brisbane City Council and the Sydney City Councils. Results show that the model represents a valuable aid to financial management decision-making.     

Transparency and Public Value—Analyzing the Transparency Practices and Value Creation of Public Utilities

This article examines to what extent transparency is a condition for the creation of public value. Transparency is usually narrowly defined as a tool for external stakeholders to monitor the internal workings of an organization, but public value management positions transparency as a broader instrument for actively engaging stakeholders. We investigate empirically whether transparency is indeed necessary to create public value, distinguishing between transparency about operational capacity, authorizing environment, and value proposition. We find that more transparent public organizations achieved higher public value scores, especially if they disclosed information about the design and dynamics of their authorizing environment.