To manage or reserve accruals? Evidence from a balanced-budget requirement reform
| Autor: | Pierre Donatella, Emmeli Runesson, Torbjörn Tagesson |
|---|---|
| Rok vydání: | 2023 |
| Předmět: |
Public Administration
Sociology and Political Science Public Administration Studies Studier av offentlig förvaltning Accounting Accrual accounting balanced-budget requirement earnings management incentives municipalities public sector regulatory incentives political incentives General Business Management and Accounting Finance Business Administration Företagsekonomi |
| Zdroj: | Public Money & Management. :1-10 |
| ISSN: | 1467-9302 0954-0962 |
| Popis: | In 2013, an accounting reform permitted Swedish municipalities to voluntarily adopt a system withaccrual reserves that was designed to increase flexibility in meeting budget requirements anddecrease regulatory incentives to engage in earnings management. However, since a system withaccrual reserves imposes potentially undesirable transparency from the perspective of politicians,it is unclear whether the (regulatory) benefits of adopting accrual reserves are perceived to exceedthe (political) costs. The authors found that municipalities with higher levels of earningsmanagement were less likely to adopt a system of accrual reserves, and they attribute this topolitical incentives to avoid transparency. |
| Databáze: | OpenAIRE |
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