Risk Factors and Drivers of Financial Sustainability in Local Government: An Empirical Study |
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Authors: | Manuel Pedro Rodríguez Bolívar Andrés Navarro Galera Laura Alcaide Muñoz María Deseada López Subirés |
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Affiliation: | Department of Accounting and Finance (Faculty of Business Studies), University of Granada, Granada, Spain |
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Abstract: | The current international crisis in public finances has made financial sustainability a key issue for governments. Although the European Union (EU) and other international organisations have recommended governments to monitor demographic and economic variables, few studies have considered the influence of these variables on financial sustainability. This paper seeks to identify and analyse the drivers and risk factors that influence the financial sustainability of local government. The findings identify both risk factors (unemployment and population aged under 16 years) and drivers (budgetary outcome) of financial sustainability, which may constitute a useful basis for decision-taking by managers and policy-makers. |
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Keywords: | Financial sustainability drivers and risk factors local governments |
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