TY - JOUR
T1 - ACCOUNTING REFORMS: DETERMINANTS OF LOCAL
GOVERNMENTS CHOICES
AU - Anessi Pessina, Eugenio
AU - Nasi, Greta
AU - Steccolini, Ileana
PY - 2008
Y1 - 2008
N2 - The introduction of accruals accounting in Italian LGs has been mandated in a way that permits, and in fact encourages, a merely formal compliance. LGs must produce accrual-based financial statements, but double-entry bookkeeping is not mandatory, nor may traditional budgetary accounting be abandoned. Why, then, should they bother to introduce an integrated system of budgetary and accruals accounting?
In this paper, we empirically investigate the determinants of LGs’ choices of accounting innovation. According to our results, “rational” elements such as complexity, types of activities performed, presence of surpluses, and access to capital markets are seemingly unhelpful in explaining why a LG decides to introduce accruals accounting. What counts are “institutional” and cultural explanations, such as the perceptions of CFOs and the north-south divide.
AB - The introduction of accruals accounting in Italian LGs has been mandated in a way that permits, and in fact encourages, a merely formal compliance. LGs must produce accrual-based financial statements, but double-entry bookkeeping is not mandatory, nor may traditional budgetary accounting be abandoned. Why, then, should they bother to introduce an integrated system of budgetary and accruals accounting?
In this paper, we empirically investigate the determinants of LGs’ choices of accounting innovation. According to our results, “rational” elements such as complexity, types of activities performed, presence of surpluses, and access to capital markets are seemingly unhelpful in explaining why a LG decides to introduce accruals accounting. What counts are “institutional” and cultural explanations, such as the perceptions of CFOs and the north-south divide.
KW - Government accounting
KW - Local governments
KW - contabilità
KW - enti locali
KW - Government accounting
KW - Local governments
KW - contabilità
KW - enti locali
UR - http://hdl.handle.net/10807/20566
M3 - Article
SN - 0267-4424
VL - 24
SP - 321
EP - 342
JO - FINANCIAL ACCOUNTABILITY & MANAGEMENT
JF - FINANCIAL ACCOUNTABILITY & MANAGEMENT
ER -