Journal of Public Budgeting, Accounting & Financial ManagementTable of Contents for Journal of Public Budgeting, Accounting & Financial Management. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/1096-3367/vol/36/iss/6?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestJournal of Public Budgeting, Accounting & Financial ManagementEmerald Publishing LimitedJournal of Public Budgeting, Accounting & Financial ManagementJournal of Public Budgeting, Accounting & Financial Managementhttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/23d5c8699bf2210ba9e6120beb640343/urn:emeraldgroup.com:asset:id:binary:jpbafm.cover.jpghttps://www.emerald.com/insight/publication/issn/1096-3367/vol/36/iss/6?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestPerformance management and measurement impacts on universities: (re)viewing the past, present and futurehttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-10-2023-0176/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper undertakes a structured literature review to analyse the literature on performance management and measurement (PMM) in universities over the last four decades. Over that time, PMM has emerged as an influential force in universities that impacts their operations and redefines their identity. A structured literature review approach was used to analyse a sample of articles on PMM research from a broad range of disciplines over four decades. This was undertaken to understand the impacts of PMM practices on universities, highlight changes over time and point to avenues for future research. The analysis highlights the fact that research on PMM in universities has grown significantly over the 40 years studied. We provide an overview of published articles over four decades regarding content, themes, theories, methods and impacts. We provide an empirical basis for discussing past, present and future university PMM research. The future research avenues offer multiple provocations for scholars and policymakers, for instance, PMM implementation strategies and relationships with various government programs and external evaluation and the role of different actors, particularly academics, in shaping PMM systems. Unlike a traditional literature review, the structured literature review method can develop insights into how the field has changed over time and highlight possible future research. The sample for this literature review differs from previous reviews in covering a broad range of disciplines, including accounting.Performance management and measurement impacts on universities: (re)viewing the past, present and future
James Guthrie, Francesca Manes-Rossi, Rebecca Levy Orelli, Vincenzo Sforza
Journal of Public Budgeting, Accounting & Financial Management, Vol. 36, No. 6, pp.1-25

This paper undertakes a structured literature review to analyse the literature on performance management and measurement (PMM) in universities over the last four decades. Over that time, PMM has emerged as an influential force in universities that impacts their operations and redefines their identity.

A structured literature review approach was used to analyse a sample of articles on PMM research from a broad range of disciplines over four decades. This was undertaken to understand the impacts of PMM practices on universities, highlight changes over time and point to avenues for future research.

The analysis highlights the fact that research on PMM in universities has grown significantly over the 40 years studied. We provide an overview of published articles over four decades regarding content, themes, theories, methods and impacts. We provide an empirical basis for discussing past, present and future university PMM research. The future research avenues offer multiple provocations for scholars and policymakers, for instance, PMM implementation strategies and relationships with various government programs and external evaluation and the role of different actors, particularly academics, in shaping PMM systems.

Unlike a traditional literature review, the structured literature review method can develop insights into how the field has changed over time and highlight possible future research. The sample for this literature review differs from previous reviews in covering a broad range of disciplines, including accounting.

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Performance management and measurement impacts on universities: (re)viewing the past, present and future10.1108/JPBAFM-10-2023-0176Journal of Public Budgeting, Accounting & Financial Management2024-02-07© 2024 James Guthrie, Francesca Manes-Rossi, Rebecca Levy Orelli and Vincenzo SforzaJames GuthrieFrancesca Manes-RossiRebecca Levy OrelliVincenzo SforzaJournal of Public Budgeting, Accounting & Financial Management3662024-02-0710.1108/JPBAFM-10-2023-0176https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-10-2023-0176/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 James Guthrie, Francesca Manes-Rossi, Rebecca Levy Orelli and Vincenzo Sforzahttp://creativecommons.org/licences/by/4.0/legalcode
Mayor re-election and earnings management: evidence from Portuguese municipalitieshttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-01-2023-0005/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe aim of this paper is to investigate whether Mayors in Portugal engage in earnings management close to zero with the motivation of re-election. The data used in this study were annual financial information from Portuguese municipalities from 2005 to 2016, as well as data on elections and Mayor re-elections involving three political cycles. The methodologies employed were quantitative, including graphical and panel data regressions. The results indicate that municipalities used discretionary accruals to engage in earnings management to report net earnings close to zero, and re-election seems to be a motivation for earnings management behaviour. Furthermore, the results suggest that municipalities in which the Mayor is re-elected are less likely to report positive net earnings close to zero. This paper makes a valuable contribution to the literature on earnings management in municipalities. At the theoretical level, it makes it possible to identify whether re-election is a motivation for earnings management and, in this sense, to identify patterns of behaviour by managers. On a practical level, the knowledge of a manager's behaviour patterns will help to anticipate his or her future behaviour and, consequently, may prevent inefficiencies.Mayor re-election and earnings management: evidence from Portuguese municipalities
Augusta Ferreira
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The aim of this paper is to investigate whether Mayors in Portugal engage in earnings management close to zero with the motivation of re-election.

The data used in this study were annual financial information from Portuguese municipalities from 2005 to 2016, as well as data on elections and Mayor re-elections involving three political cycles. The methodologies employed were quantitative, including graphical and panel data regressions.

The results indicate that municipalities used discretionary accruals to engage in earnings management to report net earnings close to zero, and re-election seems to be a motivation for earnings management behaviour. Furthermore, the results suggest that municipalities in which the Mayor is re-elected are less likely to report positive net earnings close to zero.

This paper makes a valuable contribution to the literature on earnings management in municipalities. At the theoretical level, it makes it possible to identify whether re-election is a motivation for earnings management and, in this sense, to identify patterns of behaviour by managers. On a practical level, the knowledge of a manager's behaviour patterns will help to anticipate his or her future behaviour and, consequently, may prevent inefficiencies.

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Mayor re-election and earnings management: evidence from Portuguese municipalities10.1108/JPBAFM-01-2023-0005Journal of Public Budgeting, Accounting & Financial Management2023-12-08© 2023 Emerald Publishing LimitedAugusta FerreiraJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-12-0810.1108/JPBAFM-01-2023-0005https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-01-2023-0005/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Proportional appropriation systems and financial statement quality in municipally owned entities: empirical evidence from Italyhttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-01-2023-0015/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine how proportional appropriation systems affect the quality of financial reporting in entities controlled by local governments. The authors examine this issue using the setting of Italian municipally owned entities (MOEs) following the implementation of a new accounting regulation that limits the spending power of the participating municipality when the owned entity reports losses. The authors apply Benford's law on net income figures using the Chi-square and Z-tests on the adjusted version of the Mean Absolute Deviation (MAD) criterion to spot any sign of low data quality. The sample, which consists of 2,120 MOEs, covers the years 2010–2019 and is evenly divided into the periods pre- and post-policy introduction. Widespread data anomalies were detected following the introduction of the new regulation for MOEs controlled by local governments. Evidence is stronger for entities owned entirely by municipalities. The results suggest that the extent of data manipulation grows as the municipality's ownership stake increases, consistent with the hypothesis that a decrease in spending power through the appropriation of financial resources affects earnings management practices in municipally controlled entities. This paper sheds light on government-based accounting policies by documenting evidence of somewhat inefficient responses by those responsible for the preparation of financial statements on behalf of municipally owned entities, and, accordingly, insights are provided to help review these policies so as to forestall even indirectly detrimental repercussions on public services. This paper extends prior research in public-sector earnings management by being the first to test whether MOEs manipulate their earnings as a consequence of participating municipalities' reduced spending capability. Understanding factors influencing earnings management practices driven by governments, other than political incentives, is still an open issue.Proportional appropriation systems and financial statement quality in municipally owned entities: empirical evidence from Italy
Francesco Capalbo, Luca Galati, Claudio Lupi, Margherita Smarra
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine how proportional appropriation systems affect the quality of financial reporting in entities controlled by local governments.

The authors examine this issue using the setting of Italian municipally owned entities (MOEs) following the implementation of a new accounting regulation that limits the spending power of the participating municipality when the owned entity reports losses. The authors apply Benford's law on net income figures using the Chi-square and Z-tests on the adjusted version of the Mean Absolute Deviation (MAD) criterion to spot any sign of low data quality. The sample, which consists of 2,120 MOEs, covers the years 2010–2019 and is evenly divided into the periods pre- and post-policy introduction.

Widespread data anomalies were detected following the introduction of the new regulation for MOEs controlled by local governments. Evidence is stronger for entities owned entirely by municipalities. The results suggest that the extent of data manipulation grows as the municipality's ownership stake increases, consistent with the hypothesis that a decrease in spending power through the appropriation of financial resources affects earnings management practices in municipally controlled entities.

This paper sheds light on government-based accounting policies by documenting evidence of somewhat inefficient responses by those responsible for the preparation of financial statements on behalf of municipally owned entities, and, accordingly, insights are provided to help review these policies so as to forestall even indirectly detrimental repercussions on public services.

This paper extends prior research in public-sector earnings management by being the first to test whether MOEs manipulate their earnings as a consequence of participating municipalities' reduced spending capability. Understanding factors influencing earnings management practices driven by governments, other than political incentives, is still an open issue.

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Proportional appropriation systems and financial statement quality in municipally owned entities: empirical evidence from Italy10.1108/JPBAFM-01-2023-0015Journal of Public Budgeting, Accounting & Financial Management2023-09-05© 2023 Emerald Publishing LimitedFrancesco CapalboLuca GalatiClaudio LupiMargherita SmarraJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-09-0510.1108/JPBAFM-01-2023-0015https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-01-2023-0015/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A review of GASB No. 34https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-03-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper documents the Government Accounting Standards Board (GASB) 34 literature, primarily in the areas of (1) accountability and improved reporting, (2) government-wide financial statements and accrual accounting and (3) infrastructure asset capitalization and the modified approach. The paper also evaluates the state of the research, recognizes implications for practice and standard setting, identifies knowledge gaps and proposes avenues for future research. The authors identified the articles in this narrative review by searching Google Scholar and EBSCO for the years 2000 through 2023, using the keywords GASB 34, government-wide financial statements, government fund statements, infrastructure assets and modified approach. This review finds that GASB 34 requirements improved accountability and reporting, but GASB can still make improvements. The addition of the MD&A section requirement improved readability but placed a burden on preparers. Analysis of government-wide statement research indicates that the accrual-based Statement of Net Assets provides value in credit decisions, while the accrual-based Statement of Activities does not. The research on infrastructure accounting requirements shows limited adoption of the modified approach and some comparability issues with choices involving capitalization thresholds, baselines and asset management systems (AMSs). Based on this review, the authors also present suggestions to further this line of research. To the best of the authors’ knowledge, this is the first article that reviews over 20 years of GASB 34 related literature. The review and suggestions for future research are timely as GASB is in the process of reexamining some of GASB 34's requirements.A review of GASB No. 34
Joyce Njoroge, Lori Solsma, Kent Hu
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper documents the Government Accounting Standards Board (GASB) 34 literature, primarily in the areas of (1) accountability and improved reporting, (2) government-wide financial statements and accrual accounting and (3) infrastructure asset capitalization and the modified approach. The paper also evaluates the state of the research, recognizes implications for practice and standard setting, identifies knowledge gaps and proposes avenues for future research.

The authors identified the articles in this narrative review by searching Google Scholar and EBSCO for the years 2000 through 2023, using the keywords GASB 34, government-wide financial statements, government fund statements, infrastructure assets and modified approach.

This review finds that GASB 34 requirements improved accountability and reporting, but GASB can still make improvements. The addition of the MD&A section requirement improved readability but placed a burden on preparers. Analysis of government-wide statement research indicates that the accrual-based Statement of Net Assets provides value in credit decisions, while the accrual-based Statement of Activities does not. The research on infrastructure accounting requirements shows limited adoption of the modified approach and some comparability issues with choices involving capitalization thresholds, baselines and asset management systems (AMSs). Based on this review, the authors also present suggestions to further this line of research.

To the best of the authors’ knowledge, this is the first article that reviews over 20 years of GASB 34 related literature. The review and suggestions for future research are timely as GASB is in the process of reexamining some of GASB 34's requirements.

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A review of GASB No. 3410.1108/JPBAFM-03-2023-0036Journal of Public Budgeting, Accounting & Financial Management2023-12-12© 2023 Emerald Publishing LimitedJoyce NjorogeLori SolsmaKent HuJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-12-1210.1108/JPBAFM-03-2023-0036https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-03-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Co-creating sustainability performance accounts in cities via tinkering and bricolagehttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-03-2023-0052/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestExisting performance assessment frameworks, such as the Sustainable Development Goals (SDGs), struggle to incorporate diverse voices and representations of heterogeneous contexts. Cities, in particular, present a challenging context for sustainability performance assessment as they pursue new forms of governance based on the multiplicity of actors and inter-organisational collaboration. This study explores how sustainability performance accounts are created at the urban level within collaborative forms of governance and amidst the plethora of available devices for performance assessment. This study adopts a case study approach. Qualitative methods are mobilised to study a large European project focused on the urban transition to a circular economy in six participating cities. The construction of sustainability performance accounts is studied via the Actor-Network Theory lens. The study highlights that when it comes to sustainability assessment in city initiatives, existing performance assessment devices are adapted and modified to fit local needs and other sources of performance information are spontaneously mobilised to address the different dimensions of sustainability. This study contributes to the public sector accounting literature by explaining the process of modifying existing devices for performance assessment to allow for the co-creation of accounts and by illuminating the spontaneous way in which performance information is generated and combined.Co-creating sustainability performance accounts in cities via tinkering and bricolage
Justyna Bekier, Cristiana Parisi
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

Existing performance assessment frameworks, such as the Sustainable Development Goals (SDGs), struggle to incorporate diverse voices and representations of heterogeneous contexts. Cities, in particular, present a challenging context for sustainability performance assessment as they pursue new forms of governance based on the multiplicity of actors and inter-organisational collaboration. This study explores how sustainability performance accounts are created at the urban level within collaborative forms of governance and amidst the plethora of available devices for performance assessment.

This study adopts a case study approach. Qualitative methods are mobilised to study a large European project focused on the urban transition to a circular economy in six participating cities. The construction of sustainability performance accounts is studied via the Actor-Network Theory lens.

The study highlights that when it comes to sustainability assessment in city initiatives, existing performance assessment devices are adapted and modified to fit local needs and other sources of performance information are spontaneously mobilised to address the different dimensions of sustainability.

This study contributes to the public sector accounting literature by explaining the process of modifying existing devices for performance assessment to allow for the co-creation of accounts and by illuminating the spontaneous way in which performance information is generated and combined.

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Co-creating sustainability performance accounts in cities via tinkering and bricolage10.1108/JPBAFM-03-2023-0052Journal of Public Budgeting, Accounting & Financial Management2023-12-25© 2023 Emerald Publishing LimitedJustyna BekierCristiana ParisiJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-12-2510.1108/JPBAFM-03-2023-0052https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-03-2023-0052/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Sustainable development goals accounting and reporting for the “Other” sectorhttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-03-2023-0053/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper provides insights into Sustainable Development Goals (SDGs) Accounting and Reporting for the Other Sector, defined as organisations that are not corporations and do not have profitability as their overriding success criterion. This is a conceptual paper that addresses the impact of SDGs on the Other Sector and the accounting and reporting of them by these organisations. There are a number of implications for research in relation to theories, research approaches and the crossing over of disciplines in relation to the Other Sector’s SDGs accounting and reporting. The research insights from this paper can be applied to inform the SDGs accounting and reporting practice of the Other Sector. This paper addresses the impact of the recent sustainability development, the SDGs, on a sector that is very different from the corporate sector and highlights the benefit of accounting and reporting of these goals for the Other Sector.Sustainable development goals accounting and reporting for the “Other” sector
Sumit Lodhia
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper provides insights into Sustainable Development Goals (SDGs) Accounting and Reporting for the Other Sector, defined as organisations that are not corporations and do not have profitability as their overriding success criterion.

This is a conceptual paper that addresses the impact of SDGs on the Other Sector and the accounting and reporting of them by these organisations.

There are a number of implications for research in relation to theories, research approaches and the crossing over of disciplines in relation to the Other Sector’s SDGs accounting and reporting.

The research insights from this paper can be applied to inform the SDGs accounting and reporting practice of the Other Sector.

This paper addresses the impact of the recent sustainability development, the SDGs, on a sector that is very different from the corporate sector and highlights the benefit of accounting and reporting of these goals for the Other Sector.

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Sustainable development goals accounting and reporting for the “Other” sector10.1108/JPBAFM-03-2023-0053Journal of Public Budgeting, Accounting & Financial Management2024-02-21© 2024 Emerald Publishing LimitedSumit LodhiaJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-02-2110.1108/JPBAFM-03-2023-0053https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-03-2023-0053/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
How to manage sustainability in healthcare organizations? A processing map to include the ESG strategyhttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-04-2023-0065/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to identify the key issues that healthcare knowledge-intensive organizations (KIPOs) should focus on to define themselves as socioenvironmentally and governance responsible for integrating environmental, social, and governance (ESG) logic into their business strategy. At the same time, this provides an understanding of how healthcare KIPOs contribute to achieving the Sustainable Development Goals of the 2030 Agenda. Taking a cue from the model developed by the World Economic Forum, an “ESG Processing Map” was constructed to identify qualitative disclosures that a healthcare company should consider when implementing sustainability logic. The aspects investigated were processed, considering national and international standards, frameworks and disclosures. The social network analysis technique was used to systemize and combine the outcomes of these processes and analyze their consistency with sustainable development. Through the “ESG Processing Map,” 13 areas of action and 27 topics specific to the health sector were defined on which to intervene in sustainability in order to concretely help HCOs to place specific corrective and improvement actions over time concerning socioenvironmental and governance aspects. The paper provides contribute, on the one hand, to enriching and updating the academic literature on ESG logic in a still underexplored field and, on the other hand, to provide these types of organizations with a “compass” to guide and orient their business strategies towards sustainability.How to manage sustainability in healthcare organizations? A processing map to include the ESG strategy
Federica Bosco, Chiara Di Gerio, Gloria Fiorani, Giulia Stola
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to identify the key issues that healthcare knowledge-intensive organizations (KIPOs) should focus on to define themselves as socioenvironmentally and governance responsible for integrating environmental, social, and governance (ESG) logic into their business strategy. At the same time, this provides an understanding of how healthcare KIPOs contribute to achieving the Sustainable Development Goals of the 2030 Agenda.

Taking a cue from the model developed by the World Economic Forum, an “ESG Processing Map” was constructed to identify qualitative disclosures that a healthcare company should consider when implementing sustainability logic. The aspects investigated were processed, considering national and international standards, frameworks and disclosures. The social network analysis technique was used to systemize and combine the outcomes of these processes and analyze their consistency with sustainable development.

Through the “ESG Processing Map,” 13 areas of action and 27 topics specific to the health sector were defined on which to intervene in sustainability in order to concretely help HCOs to place specific corrective and improvement actions over time concerning socioenvironmental and governance aspects.

The paper provides contribute, on the one hand, to enriching and updating the academic literature on ESG logic in a still underexplored field and, on the other hand, to provide these types of organizations with a “compass” to guide and orient their business strategies towards sustainability.

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How to manage sustainability in healthcare organizations? A processing map to include the ESG strategy10.1108/JPBAFM-04-2023-0065Journal of Public Budgeting, Accounting & Financial Management2024-01-16© 2023 Federica Bosco, Chiara Di Gerio, Gloria Fiorani and Giulia StolaFederica BoscoChiara Di GerioGloria FioraniGiulia StolaJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-01-1610.1108/JPBAFM-04-2023-0065https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-04-2023-0065/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Federica Bosco, Chiara Di Gerio, Gloria Fiorani and Giulia Stolahttp://creativecommons.org/licences/by/4.0/legalcode
Earnings management detection through budget execution. Insights from Greek municipalitieshttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-05-2023-0080/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study examines specific budget execution items (as proxies of vulnerability and sustainability) along with political factors to identify earnings management (EM) practices in Greek municipalities. The study employs a sample of 1,831 financial and budget execution statements for the period 2011–2019. EM is proxied by unsigned discretionary accruals that are assessed through the performance-matched modified-Jones model and the modified-Jones model. The findings provide evidence that the municipality’s dependence on subsidies (or its self-sufficiency) affects EM, especially during the pre-election year. Municipalities that maintain their financial autonomy engage less in EM in pre-election years. Lastly, it is proven that electoral cycles, weak opposition and other variables exert an effect on the size of EM. Sensitivity analysis confirms the results. This paper contributes to the literature on EM by analyzing for the first time budget execution items (as proxies of vulnerability and sustainability) and their impact on the size of unsigned discretionary accruals.Earnings management detection through budget execution. Insights from Greek municipalities
Ioanna Malkogianni
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study examines specific budget execution items (as proxies of vulnerability and sustainability) along with political factors to identify earnings management (EM) practices in Greek municipalities.

The study employs a sample of 1,831 financial and budget execution statements for the period 2011–2019. EM is proxied by unsigned discretionary accruals that are assessed through the performance-matched modified-Jones model and the modified-Jones model.

The findings provide evidence that the municipality’s dependence on subsidies (or its self-sufficiency) affects EM, especially during the pre-election year. Municipalities that maintain their financial autonomy engage less in EM in pre-election years. Lastly, it is proven that electoral cycles, weak opposition and other variables exert an effect on the size of EM. Sensitivity analysis confirms the results.

This paper contributes to the literature on EM by analyzing for the first time budget execution items (as proxies of vulnerability and sustainability) and their impact on the size of unsigned discretionary accruals.

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Earnings management detection through budget execution. Insights from Greek municipalities10.1108/JPBAFM-05-2023-0080Journal of Public Budgeting, Accounting & Financial Management2024-01-12© 2023 Emerald Publishing LimitedIoanna MalkogianniJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-01-1210.1108/JPBAFM-05-2023-0080https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-05-2023-0080/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Gender-responsive budgeting implementation challenges: evidence from South Koreahttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-06-2023-0089/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this research is to further the understanding of how to implement gender-responsive budgeting (GRB) systems. The author explores whether GRB reforms might benefit from integration into a performance-oriented budgetary structure and whether GRB's equity orientation is linked to additional implementation challenges. This research follows a qualitative case study of South Korea guided by a predetermined research framework and built from extensive documentation, archival records and expert interviews. GRB’s integration into a performance framework can be burdensome, and the equity orientation of GRB results in additional implementation challenges, such as higher vulnerability to the political context and active resistance from public officials. This research shows that integrating GRB with performance systems may require overcoming significant administrative obstacles. Also, GRB’s equity orientation is linked to a higher vulnerability to the political cycle and active resistance from civil servants.Gender-responsive budgeting implementation challenges: evidence from South Korea
Juan Pablo Martínez Guzmán
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this research is to further the understanding of how to implement gender-responsive budgeting (GRB) systems. The author explores whether GRB reforms might benefit from integration into a performance-oriented budgetary structure and whether GRB's equity orientation is linked to additional implementation challenges.

This research follows a qualitative case study of South Korea guided by a predetermined research framework and built from extensive documentation, archival records and expert interviews.

GRB’s integration into a performance framework can be burdensome, and the equity orientation of GRB results in additional implementation challenges, such as higher vulnerability to the political context and active resistance from public officials.

This research shows that integrating GRB with performance systems may require overcoming significant administrative obstacles. Also, GRB’s equity orientation is linked to a higher vulnerability to the political cycle and active resistance from civil servants.

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Gender-responsive budgeting implementation challenges: evidence from South Korea10.1108/JPBAFM-06-2023-0089Journal of Public Budgeting, Accounting & Financial Management2024-01-05© 2023 Emerald Publishing LimitedJuan Pablo Martínez GuzmánJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-01-0510.1108/JPBAFM-06-2023-0089https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-06-2023-0089/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The integration of education for sustainable development into accounting education: stakeholders’ salience perspectiveshttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-06-2023-0105/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper applies a stakeholder salience theoretical framework to facilitate the understanding of the roles salient stakeholders can have in the integration of education for sustainable development, one of the important Sustainable Development Goals (SDGs), into Jordan’s university accounting education. We used stakeholder salience theory to inform our study. This study adopted a qualitative research method. The study used semi-structured interviews to collect qualitative, open-ended data that explored the salient stakeholders’ thoughts, beliefs and feelings about their roles in influencing the integration of education for sustainable development into the Jordanian accounting curriculum. The results indicate that education for sustainable development in accounting is important; however, most Jordanian salient stakeholders indicate their inability to integrate sustainable education into the accounting curriculum due to their lack of power to do so. The findings show that there is currently an inappropriate distribution of power, legitimacy and urgency amongst the salient stakeholders, who indicate that a progressive education solution is required in the critical area of education for sustainable development in accounting. This research indicates that a significant number of salient stakeholders would like the Jordanian government to provide power, legitimacy and urgency to enable accounting educators to become definite stakeholders as this will enable them to integrate sustainable education into the accounting curriculum. The study is limited to Jordan only. The paper draws attention to the need for an appropriate distribution of power, legitimacy and urgency amongst salient stakeholders in Jordan. This paper provides evidence that the salient stakeholders in this emerging economy want to make changes in their education system to address climate change concerns, an important SDG, through a better education curriculum for sustainable development in Jordanian universities. Accounting educators should be given the power to make changes in the accounting curriculum, such as integrating education for sustainable development. There is an inappropriate distribution of power, legitimacy and urgency amongst the Jordanian salient stakeholders and this imbalance hinders the integration of education for sustainable development into the accounting curriculum.The integration of education for sustainable development into accounting education: stakeholders’ salience perspectives
Huthaifa Al-Hazaima, Mary Low, Umesh Sharma
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper applies a stakeholder salience theoretical framework to facilitate the understanding of the roles salient stakeholders can have in the integration of education for sustainable development, one of the important Sustainable Development Goals (SDGs), into Jordan’s university accounting education.

We used stakeholder salience theory to inform our study. This study adopted a qualitative research method. The study used semi-structured interviews to collect qualitative, open-ended data that explored the salient stakeholders’ thoughts, beliefs and feelings about their roles in influencing the integration of education for sustainable development into the Jordanian accounting curriculum.

The results indicate that education for sustainable development in accounting is important; however, most Jordanian salient stakeholders indicate their inability to integrate sustainable education into the accounting curriculum due to their lack of power to do so. The findings show that there is currently an inappropriate distribution of power, legitimacy and urgency amongst the salient stakeholders, who indicate that a progressive education solution is required in the critical area of education for sustainable development in accounting. This research indicates that a significant number of salient stakeholders would like the Jordanian government to provide power, legitimacy and urgency to enable accounting educators to become definite stakeholders as this will enable them to integrate sustainable education into the accounting curriculum.

The study is limited to Jordan only. The paper draws attention to the need for an appropriate distribution of power, legitimacy and urgency amongst salient stakeholders in Jordan.

This paper provides evidence that the salient stakeholders in this emerging economy want to make changes in their education system to address climate change concerns, an important SDG, through a better education curriculum for sustainable development in Jordanian universities.

Accounting educators should be given the power to make changes in the accounting curriculum, such as integrating education for sustainable development.

There is an inappropriate distribution of power, legitimacy and urgency amongst the Jordanian salient stakeholders and this imbalance hinders the integration of education for sustainable development into the accounting curriculum.

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The integration of education for sustainable development into accounting education: stakeholders’ salience perspectives10.1108/JPBAFM-06-2023-0105Journal of Public Budgeting, Accounting & Financial Management2024-01-31© 2024 Emerald Publishing LimitedHuthaifa Al-HazaimaMary LowUmesh SharmaJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-01-3110.1108/JPBAFM-06-2023-0105https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-06-2023-0105/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Financially supported nonprofits and IRS Form 990 expense reportinghttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0109/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe authors examine whether limitations in Form 990 result in zero or understated fundraising and administrative expenses for organizations supported by related organizations. Form 990 does not consolidate financial information of legally separate related organizations, resulting in fundraising and administrative expenses being reported by supporting organizations but not by the supported organization. The authors use the IRS Statistics of Income Sample Data Files and compare charities receiving support from related organizations (supported) to non-supported charities. The authors find evidence that supported organizations are likely to report zero or understated fundraising expenses and zero administrative expenses. Those receiving related donations are more likely to have zero or understated fundraising expense while those receiving related compensation are more likely to have zero and understated fundraising and administrative expenses. The authors also find evidence that supported organizations receiving greater amounts of related donations and related compensation are also more likely to report zero and understated fundraising expenses as well as zero administrative expenses while greater amounts of related compensation are also associated with understated administrative expense. Since donors and other stakeholders use Form 990 to evaluate nonprofits, its unconsolidated nature could result in a lack of comparability across organizations and misinformed resource allocation (e.g. donation) decisions. The results also have implications for researchers who use zero and understated fundraising and administrative expenses as proxies for low quality reporting or interpret them as data errors. The paper examines the extent to which zero or understated fundraising expense reporting (i.e. the fundraising expense puzzle) is associated with supported organizations receiving financial support from related organizations. The authors also expand their examination to zero and understated administrative expenses.Financially supported nonprofits and IRS Form 990 expense reporting
Arthur Allen, Laurie Corradino, Brian McAllister
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The authors examine whether limitations in Form 990 result in zero or understated fundraising and administrative expenses for organizations supported by related organizations. Form 990 does not consolidate financial information of legally separate related organizations, resulting in fundraising and administrative expenses being reported by supporting organizations but not by the supported organization.

The authors use the IRS Statistics of Income Sample Data Files and compare charities receiving support from related organizations (supported) to non-supported charities.

The authors find evidence that supported organizations are likely to report zero or understated fundraising expenses and zero administrative expenses. Those receiving related donations are more likely to have zero or understated fundraising expense while those receiving related compensation are more likely to have zero and understated fundraising and administrative expenses. The authors also find evidence that supported organizations receiving greater amounts of related donations and related compensation are also more likely to report zero and understated fundraising expenses as well as zero administrative expenses while greater amounts of related compensation are also associated with understated administrative expense.

Since donors and other stakeholders use Form 990 to evaluate nonprofits, its unconsolidated nature could result in a lack of comparability across organizations and misinformed resource allocation (e.g. donation) decisions. The results also have implications for researchers who use zero and understated fundraising and administrative expenses as proxies for low quality reporting or interpret them as data errors.

The paper examines the extent to which zero or understated fundraising expense reporting (i.e. the fundraising expense puzzle) is associated with supported organizations receiving financial support from related organizations. The authors also expand their examination to zero and understated administrative expenses.

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Financially supported nonprofits and IRS Form 990 expense reporting10.1108/JPBAFM-07-2023-0109Journal of Public Budgeting, Accounting & Financial Management2024-01-15© 2023 Emerald Publishing LimitedArthur AllenLaurie CorradinoBrian McAllisterJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-01-1510.1108/JPBAFM-07-2023-0109https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0109/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Public sector audit: new public management influences and eco-system driven reformshttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0124/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestNew public management (NPM) has transformed the public sector auditing context, although in quite different ways. Further, investigations into NPM’s impact on public sector auditors and audit institutions have been largely unconnected, with the exception of the critical examination of performance audits. We investigate the question of how public sector auditors’ roles and activities have changed as a result of NPM and later reforms. We examine and synthesise public sector audit research examining reforms since the year 2000. The research presented considers changes to external and internal public sector audits as well as the development of public sector audit institutions – known as supreme audit institutions (SAIs). Considerable changes have occurred. Many were influenced by NPM, but others have evolved from the eco-system of accounting, auditing and public sector management. External auditors have responded to an increase in demand for accountability. Additional management and governance techniques have been introduced from the private sector, such as internal auditing and audit committees. NPM has also led to conflicting trends, particularly when governments introduced competition to public sector auditing by contracting out but then chose to centralise to improve accountability. There is also greater international influence now through bodies like the International Organisation of Supreme Audit Institutions (INTOSAI) and similar regional bodies. NPM reforms and the eco-system have impacted public sector auditing. Sustainability reporting is emerging as an area requiring more auditing attention; auditors also need to continue to develop better ways to communicate with citizens. Further, research into auditing in non-Western nations and emerging technologies is also required, especially where it provides learnings around more valuable audit practices. Empirical evidence is required of the strengths and weaknesses of SAIs’ structural variety.Public sector audit: new public management influences and eco-system driven reforms
Carolyn J. Cordery, David Hay
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

New public management (NPM) has transformed the public sector auditing context, although in quite different ways. Further, investigations into NPM’s impact on public sector auditors and audit institutions have been largely unconnected, with the exception of the critical examination of performance audits. We investigate the question of how public sector auditors’ roles and activities have changed as a result of NPM and later reforms.

We examine and synthesise public sector audit research examining reforms since the year 2000. The research presented considers changes to external and internal public sector audits as well as the development of public sector audit institutions – known as supreme audit institutions (SAIs).

Considerable changes have occurred. Many were influenced by NPM, but others have evolved from the eco-system of accounting, auditing and public sector management. External auditors have responded to an increase in demand for accountability. Additional management and governance techniques have been introduced from the private sector, such as internal auditing and audit committees. NPM has also led to conflicting trends, particularly when governments introduced competition to public sector auditing by contracting out but then chose to centralise to improve accountability. There is also greater international influence now through bodies like the International Organisation of Supreme Audit Institutions (INTOSAI) and similar regional bodies.

NPM reforms and the eco-system have impacted public sector auditing. Sustainability reporting is emerging as an area requiring more auditing attention; auditors also need to continue to develop better ways to communicate with citizens. Further, research into auditing in non-Western nations and emerging technologies is also required, especially where it provides learnings around more valuable audit practices. Empirical evidence is required of the strengths and weaknesses of SAIs’ structural variety.

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Public sector audit: new public management influences and eco-system driven reforms10.1108/JPBAFM-07-2023-0124Journal of Public Budgeting, Accounting & Financial Management2024-03-05© 2024 Emerald Publishing LimitedCarolyn J. CorderyDavid HayJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-03-0510.1108/JPBAFM-07-2023-0124https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0124/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Reforming resistant KIPOs to achieve justice: can the judiciary system hybridise?https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0132/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestKnowledge-intensive public organizations (KIPOs henceforth) rely heavily on knowledge as the primary resource to provide public services. This study deals with a specific kind of KIPO in the judiciary system: the courts. The paper aims to explore the court’s managerial and organisational change resulting from the national recovery and resilience plan (NRRP) reform in response to Covid-19, focussing on how this neglected KIPO responds to change, either by showing acts of resistance or undergoing a hybridisation process. The paper adopts a qualitative research design, developing an explorative case study to investigate the process of a court’s managerial and organisational change caused by NRRP reform and to shed light on how this neglected KIPO reacts to change, showing resistance acts and developing the hybridisation process. Thirty-one interviews in six months have been conducted with the three main actors in Courts: judges, clerks and trial clerks. The paper shows that in this understudied KIPO, judges fiercely resist the managerial logic that decades of reforms have been trying to impose. The recent introduction of an office for speeding up trials (Ufficio Per il Processo (UPP)) was initially opposed. Then, the resistance strategy changed, and judges started to benefit from UPP delegating repetitive and low-value tasks while retaining their core activities. Clerks approached the reform with a more positive attitude, seeing in UPP the mechanism to bridge the distance between them and the judges. Considering their relevance to society, courts must be more addressed in KIPOs' studies. This paper allows the reader to enter such KIPO and understand its peculiar features. Secondly, the article helps to understand micropractices of resistance that may hinder the effectiveness of managerial reforms.Reforming resistant KIPOs to achieve justice: can the judiciary system hybridise?
Patrizio Monfardini, Silvia Macchia, Davide Eltrudis
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

Knowledge-intensive public organizations (KIPOs henceforth) rely heavily on knowledge as the primary resource to provide public services. This study deals with a specific kind of KIPO in the judiciary system: the courts. The paper aims to explore the court’s managerial and organisational change resulting from the national recovery and resilience plan (NRRP) reform in response to Covid-19, focussing on how this neglected KIPO responds to change, either by showing acts of resistance or undergoing a hybridisation process.

The paper adopts a qualitative research design, developing an explorative case study to investigate the process of a court’s managerial and organisational change caused by NRRP reform and to shed light on how this neglected KIPO reacts to change, showing resistance acts and developing the hybridisation process. Thirty-one interviews in six months have been conducted with the three main actors in Courts: judges, clerks and trial clerks.

The paper shows that in this understudied KIPO, judges fiercely resist the managerial logic that decades of reforms have been trying to impose. The recent introduction of an office for speeding up trials (Ufficio Per il Processo (UPP)) was initially opposed. Then, the resistance strategy changed, and judges started to benefit from UPP delegating repetitive and low-value tasks while retaining their core activities. Clerks approached the reform with a more positive attitude, seeing in UPP the mechanism to bridge the distance between them and the judges.

Considering their relevance to society, courts must be more addressed in KIPOs' studies. This paper allows the reader to enter such KIPO and understand its peculiar features. Secondly, the article helps to understand micropractices of resistance that may hinder the effectiveness of managerial reforms.

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Reforming resistant KIPOs to achieve justice: can the judiciary system hybridise?10.1108/JPBAFM-07-2023-0132Journal of Public Budgeting, Accounting & Financial Management2024-02-23© 2024 Emerald Publishing LimitedPatrizio MonfardiniSilvia MacchiaDavide EltrudisJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-02-2310.1108/JPBAFM-07-2023-0132https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0132/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Telework and job satisfaction in knowledge-intensive public organizations: a quali-quantitative analysis from an environmental protection agency in Italyhttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0134/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe study aims to examine the relationship between telework conditions and employees' job satisfaction (JS) within knowledge-intensive public organizations (KIPOs). Additionally, it aims to unfold the mediating role played by both organizational and job characteristics, namely supervisory support (SS) and job autonomy (JA). The analysis adopts a simultaneous qualitative-quantitative design, starting with a preliminary inductive analysis of qualitative data, followed by a deductive quantitative analysis using structural equation modeling (SEM). The data were retrieved from a survey completed by some 700 employees of a regional environmental protection agency in Italy. Findings show that the positive association between conditions for telework (CT) and JS is partially mediated by both SS and JA. Moreover, the results of the study suggest a sequential nature of such mediational patterns. This research provides an empirical contribution to a relatively under-investigated area: the role of job characteristics in explaining the nexus between telework and JS. Furthermore, the study takes place within the context of a KIPO, adding particular significance to the emerging insights due to the distinct nature of the work conducted in such settings.Telework and job satisfaction in knowledge-intensive public organizations: a quali-quantitative analysis from an environmental protection agency in Italy
Giorgio Giacomelli, Nora Annesi, Marta Barbieri
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The study aims to examine the relationship between telework conditions and employees' job satisfaction (JS) within knowledge-intensive public organizations (KIPOs). Additionally, it aims to unfold the mediating role played by both organizational and job characteristics, namely supervisory support (SS) and job autonomy (JA).

The analysis adopts a simultaneous qualitative-quantitative design, starting with a preliminary inductive analysis of qualitative data, followed by a deductive quantitative analysis using structural equation modeling (SEM). The data were retrieved from a survey completed by some 700 employees of a regional environmental protection agency in Italy.

Findings show that the positive association between conditions for telework (CT) and JS is partially mediated by both SS and JA. Moreover, the results of the study suggest a sequential nature of such mediational patterns.

This research provides an empirical contribution to a relatively under-investigated area: the role of job characteristics in explaining the nexus between telework and JS. Furthermore, the study takes place within the context of a KIPO, adding particular significance to the emerging insights due to the distinct nature of the work conducted in such settings.

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Telework and job satisfaction in knowledge-intensive public organizations: a quali-quantitative analysis from an environmental protection agency in Italy10.1108/JPBAFM-07-2023-0134Journal of Public Budgeting, Accounting & Financial Management2023-12-21© 2023 Emerald Publishing LimitedGiorgio GiacomelliNora AnnesiMarta BarbieriJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-12-2110.1108/JPBAFM-07-2023-0134https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-07-2023-0134/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Rules or capacity for the EU’s fiscal future? From Werner and McDougall to the presenthttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-08-2023-0151/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe COVID19 crisis has thrown wide open the debate on Europe’s Economic and Monetary Union’s (EMU) future. Next Generation EU (NGEU) has broken the stalemate over a central fiscal capacity. The open question is whether NGEU is a one-off or a first step. The suspension of the Stability and Growth Pact has given new urgency to the debate on reforming EMU’s fiscal rules. There is no debate as yet about how these two prospects relate to each other. This paper argues that a permanent fiscal capacity and revised rules should be seen as alternatives. This study makes two claims: first, a fiscal capacity renders a reformed pact unnecessary and second, that is an optimal solution politically. A fiscal capacity would provide an efficient asymmetric shock absorber and therefore reduce the need for pre-emptive action against negative cross-border externalities. It would also provide an abundant supply of an EU-wide safe asset around which to structure the EU’s financial system, thus rendering unnecessary the backstopping of member states' debts. This would restore democratic accountability while eliminating moral hazard and enforcement problems.Rules or capacity for the EU’s fiscal future? From Werner and McDougall to the present
Christakis Georgiou
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The COVID19 crisis has thrown wide open the debate on Europe’s Economic and Monetary Union’s (EMU) future. Next Generation EU (NGEU) has broken the stalemate over a central fiscal capacity. The open question is whether NGEU is a one-off or a first step. The suspension of the Stability and Growth Pact has given new urgency to the debate on reforming EMU’s fiscal rules.

There is no debate as yet about how these two prospects relate to each other. This paper argues that a permanent fiscal capacity and revised rules should be seen as alternatives.

This study makes two claims: first, a fiscal capacity renders a reformed pact unnecessary and second, that is an optimal solution politically. A fiscal capacity would provide an efficient asymmetric shock absorber and therefore reduce the need for pre-emptive action against negative cross-border externalities. It would also provide an abundant supply of an EU-wide safe asset around which to structure the EU’s financial system, thus rendering unnecessary the backstopping of member states' debts.

This would restore democratic accountability while eliminating moral hazard and enforcement problems.

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Rules or capacity for the EU’s fiscal future? From Werner and McDougall to the present10.1108/JPBAFM-08-2023-0151Journal of Public Budgeting, Accounting & Financial Management2023-12-18© 2023 Emerald Publishing LimitedChristakis GeorgiouJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-12-1810.1108/JPBAFM-08-2023-0151https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-08-2023-0151/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Do balanced budget practices of U.S. states make sense? Alternatives from the Eurozonehttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-09-2023-0168/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this article is to challenge the balanced budget practices of U.S. state governments and offer alternatives that may lead to better fiscal, economic and policy outcomes. We contend that the norm of balance may be leading U.S. states to make fiscal decisions that result in less-than-ideal outcomes, especially during economic downturns. This is a normative article. We examine the scholarly evidence regarding balanced budget practices to assess the appropriateness of balanced budget norms. We also examine the fiscal rules followed by Eurozone countries to draw potential lessons for U.S. states. We conclude that state governments should move away from strict norms of budget balance and seek more flexible approaches. We suggest that instead of following strict rules and norms of balance, U.S. states should consider implementing escape clauses, debt and deficit ceilings, and fiscal councils. We also suggest that the Federal Reserve be open to lending directly to states during fiscal crises to ensure that states have access to affordable credit. The balanced budget norm has become ingrained in U.S. state budgeting practices, so much so that public officials and scholars alike rarely question it. The novel contribution of our article is to question this practice in a systematic way and propose alternative approaches.Do balanced budget practices of U.S. states make sense? Alternatives from the Eurozone
James W. Douglas, Ringa Raudla
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this article is to challenge the balanced budget practices of U.S. state governments and offer alternatives that may lead to better fiscal, economic and policy outcomes. We contend that the norm of balance may be leading U.S. states to make fiscal decisions that result in less-than-ideal outcomes, especially during economic downturns.

This is a normative article. We examine the scholarly evidence regarding balanced budget practices to assess the appropriateness of balanced budget norms. We also examine the fiscal rules followed by Eurozone countries to draw potential lessons for U.S. states.

We conclude that state governments should move away from strict norms of budget balance and seek more flexible approaches. We suggest that instead of following strict rules and norms of balance, U.S. states should consider implementing escape clauses, debt and deficit ceilings, and fiscal councils. We also suggest that the Federal Reserve be open to lending directly to states during fiscal crises to ensure that states have access to affordable credit.

The balanced budget norm has become ingrained in U.S. state budgeting practices, so much so that public officials and scholars alike rarely question it. The novel contribution of our article is to question this practice in a systematic way and propose alternative approaches.

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Do balanced budget practices of U.S. states make sense? Alternatives from the Eurozone10.1108/JPBAFM-09-2023-0168Journal of Public Budgeting, Accounting & Financial Management2024-02-14© 2024 Emerald Publishing LimitedJames W. DouglasRinga RaudlaJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-02-1410.1108/JPBAFM-09-2023-0168https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-09-2023-0168/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
The impact of inflation on local government fiscal healthhttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-09-2023-0171/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestInflation and federal monetary efforts to control it with interest rate hikes have very real and overwhelmingly negative consequences on US local governments following the onset of COVID-19. This study explores the post-pandemic inflationary environment of US local governments; examines the impacts of inflation and high interest rates on local government revenue, operating costs, capital costs, and debt service; reviews local government inflation management strategies, including the use of intergovernmental revenue; and assesses ongoing threats to local government financial health and financial resilience. This study uses trend and literature analysis to comment on current issues local governments face. The study finds that the growth of property values and resulting stability of property tax revenue has been important to local government revenues; that local governments bear very real burdens as operating and capital costs increase; and that the combination of high inflation and interest rates affects local government debt issuance by negatively affecting credit quality and interest costs, leading to municipal market contraction. Local governments have benefitted tremendously from intergovernmental revenue, but would be ill-advised to rely on it. Vulnerabilities owing from revenue mismatch with the economy; inadequate affordable housing, inequality, and social issues; a changing workforce and tight labor market; climate change; and federal fiscal contraction—all of which are exacerbated by high inflation and interest rates—require local governments to act strategically, boldly and collaboratively to achieve fiscal health and financial resilience, and to realize positive returns of investments in people and capital. This work is unique in addressing the post-pandemic impact of inflation and interest rates on local governments.The impact of inflation on local government fiscal health
Christine R. Martell
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

Inflation and federal monetary efforts to control it with interest rate hikes have very real and overwhelmingly negative consequences on US local governments following the onset of COVID-19. This study explores the post-pandemic inflationary environment of US local governments; examines the impacts of inflation and high interest rates on local government revenue, operating costs, capital costs, and debt service; reviews local government inflation management strategies, including the use of intergovernmental revenue; and assesses ongoing threats to local government financial health and financial resilience.

This study uses trend and literature analysis to comment on current issues local governments face.

The study finds that the growth of property values and resulting stability of property tax revenue has been important to local government revenues; that local governments bear very real burdens as operating and capital costs increase; and that the combination of high inflation and interest rates affects local government debt issuance by negatively affecting credit quality and interest costs, leading to municipal market contraction. Local governments have benefitted tremendously from intergovernmental revenue, but would be ill-advised to rely on it.

Vulnerabilities owing from revenue mismatch with the economy; inadequate affordable housing, inequality, and social issues; a changing workforce and tight labor market; climate change; and federal fiscal contraction—all of which are exacerbated by high inflation and interest rates—require local governments to act strategically, boldly and collaboratively to achieve fiscal health and financial resilience, and to realize positive returns of investments in people and capital.

This work is unique in addressing the post-pandemic impact of inflation and interest rates on local governments.

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The impact of inflation on local government fiscal health10.1108/JPBAFM-09-2023-0171Journal of Public Budgeting, Accounting & Financial Management2024-01-11© 2023 Emerald Publishing LimitedChristine R. MartellJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2024-01-1110.1108/JPBAFM-09-2023-0171https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-09-2023-0171/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Earnings management in local governments under a soft control regimehttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-10-2021-0144/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian authorities provides the opportunity for an empirical study. The authors adopt a two-stage strategy to investigate the existence of earnings management, using the Jones (1991) and modified Jones (Dechow et al., 1995) models to construct a random-effects model. The authors test the hypothesis that, given decentralisation of control, there will be an increase in opportunistic financial reporting. This study's findings suggest that this is not the case, thereby indicating that a soft control regime does not diminish discipline in municipalities. This study has practical implications for policymaking in the public sector. Its findings suggest that municipalities do not engage in more earnings management under a soft regulatory regime. Hence, other authorities should consider adopting a soft regulatory approach to controlling local governments and their financial reporting systems. This study contributes to a growing body of literature regarding earnings management by local governments. The authors investigate a hypothesis previously untested in the literature by comparing the degree of earnings management under different regulatory control regimes.Earnings management in local governments under a soft control regime
Ane Haugdal, Frode Kjærland, Levi Gårseth-Nesbakk, Are Oust
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian authorities provides the opportunity for an empirical study.

The authors adopt a two-stage strategy to investigate the existence of earnings management, using the Jones (1991) and modified Jones (Dechow et al., 1995) models to construct a random-effects model.

The authors test the hypothesis that, given decentralisation of control, there will be an increase in opportunistic financial reporting. This study's findings suggest that this is not the case, thereby indicating that a soft control regime does not diminish discipline in municipalities.

This study has practical implications for policymaking in the public sector. Its findings suggest that municipalities do not engage in more earnings management under a soft regulatory regime. Hence, other authorities should consider adopting a soft regulatory approach to controlling local governments and their financial reporting systems.

This study contributes to a growing body of literature regarding earnings management by local governments. The authors investigate a hypothesis previously untested in the literature by comparing the degree of earnings management under different regulatory control regimes.

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Earnings management in local governments under a soft control regime10.1108/JPBAFM-10-2021-0144Journal of Public Budgeting, Accounting & Financial Management2023-12-05© 2023 Emerald Publishing LimitedAne HaugdalFrode KjærlandLevi Gårseth-NesbakkAre OustJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-12-0510.1108/JPBAFM-10-2021-0144https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-10-2021-0144/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Raising interest rates was the wrong medicinehttps://www.emerald.com/insight/content/doi/10.1108/JPBAFM-10-2023-0173/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestIn this paper, the authors examine the causes of 2021–2023 inflation and evaluate whether raising interest rates is the right solution. The authors evaluate both the macroeconomic (too much demand) and microeconomic (monopoly pricing and supply chains) explanations for the causes of inflation. The authors argue that the spike in inflation is due to disrupted supply chains and corporations taking advantage of the situation to raise their prices. The aggregate demand stimulus from fiscal policy had all but played out by the time inflation arose, making it an unlikely cause of said inflation. The authors' paper demonstrates that raising interest rates is the wrong solution to tackling the problem of inflation, especially since it's coming from the supply side.Raising interest rates was the wrong medicine
Yeva Nersisyan, L. Randall Wray
Journal of Public Budgeting, Accounting & Financial Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

In this paper, the authors examine the causes of 2021–2023 inflation and evaluate whether raising interest rates is the right solution.

The authors evaluate both the macroeconomic (too much demand) and microeconomic (monopoly pricing and supply chains) explanations for the causes of inflation.

The authors argue that the spike in inflation is due to disrupted supply chains and corporations taking advantage of the situation to raise their prices. The aggregate demand stimulus from fiscal policy had all but played out by the time inflation arose, making it an unlikely cause of said inflation.

The authors' paper demonstrates that raising interest rates is the wrong solution to tackling the problem of inflation, especially since it's coming from the supply side.

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Raising interest rates was the wrong medicine10.1108/JPBAFM-10-2023-0173Journal of Public Budgeting, Accounting & Financial Management2023-12-29© 2023 Emerald Publishing LimitedYeva NersisyanL. Randall WrayJournal of Public Budgeting, Accounting & Financial Managementahead-of-printahead-of-print2023-12-2910.1108/JPBAFM-10-2023-0173https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-10-2023-0173/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited