Legislative Transparency and Credit Risk

Open governance requirements are designed to improve accountability, which implies that transparent governments are more trustworthy stewards of their publicly invested power. However, transparency may also reduce institutional effectiveness and inhibit political compromise, diminishing the capacity to manage resources responsibly. We assess empirical support for these competing perspectives in the context of American state legislatures, many of which have become exempt from state sunshine laws in recent decades. We leverage variation in the timing of these legislative exemptions to identify the effect of removing transparency in a crucial governing institution on investors’ risk perceptions of states’ general obligation bonds. Our analysis of these data during the period 1995–2010 suggests that removing legislative transparency reduces state credit risk. We conclude that while openness in government may be normatively desirable, shielding legislative proceedings from public view may actually be better for states’ debt repayment capacity, improving their overall fiscal health.     

Penetrating the Performance Predicament: Communication as a Mediator or Moderator of Organizational Culture's Impact on Public Organizational Performance

The role of communication in public administration has been emphasized over time in public administration theory. Nonetheless, communication—with the exception of political communication—has been neglected in scholarship. Garnett's performance predicament posits the difficulty of showing linkages between communication and performance. This paper explores the role that communication plays in achieving organizational performance through a review of research that bears on communication's direct and indirect influences on performance. The primary thrust is communication's indirect role in achieving performance by mediating or moderating the effects of organizational culture on performance, thereby adding another perspective on the culture–performance relationship. Adapting the typology of Zammuto and Krakower, two types of organizational culture—rule-oriented culture and mission-oriented culture—are examined to explore how the relationship between organizational culture and organizational performance is influenced by communication. The analysis supports the claim that communication acts as a meta-mechanism for shaping and imparting culture in mission-oriented organizational cultures, thereby influencing performance. In particular, task orientation, feedback, and upward communication have positive effects on perceived organizational performance in mission-oriented organizations but potentially negative effects on performance in rule-oriented cultures.