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The Role of Public Sector Accounting on Financial Sustainability and Governmental Effectiveness

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Financial Sustainability of Public Sector Entities

Part of the book series: Public Sector Financial Management ((PUSEFIMA))

Abstract

Several studies have investigated the role of accrual accounting adoption and the implementation of International Public Sector Accounting Standards (IPSAS) on transparency and accountability. Taking into account that scholars call for further research on governmental effectiveness as a key element of public entities’ financial sustainability, this chapter adds evidence to such debate by analysing the role of accrual accounting and IPSAS on the effectiveness of public sector entities. By using a sample of 33 OECD countries in 2010–2014, our findings highlight the relevance of accrual-based accounting for improving the effectiveness of public policy implementation.

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Notes

  1. 1.

    The indicators used to represent the first dimension, which refers to the process by which governments are selected, monitored and replaced, are (i) Voice and accountability, based on freedom of expression and association, and on the existence of a free media; (ii) Political stability and absence of violence, which expresses the likelihood of political instability and violence (including terrorism). The indicators used to represent the third dimension, which refers to the respect of citizens for the institutions that govern economic and social interactions among them, are: (i) Rule of law, based on the perceptions of confidence in the rules of society (e.g. the quality of contract enforcement, property rights and the police and the courts); (ii) Control of corruption, based on several issues, such as public trust in politicians, diversion of public funds, irregular payments and anti-corruption policy and prosecution of office abuse (Kaufmann et al. 2010).

  2. 2.

    Tables A.5 to A.9 are available in the Appendix to this chapter.

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Authors and Affiliations

  1. Department of Management and Innovation Systems, University of Salerno, Fisciano, Italy

    Marco Bisogno

  2. Department of Management and Business Economics & Multidisciplinary Institute for Enterprise, University of Salamanca, Salamanca, Spain

    Beatriz Cuadrado-Ballesteros

Authors
  1. Marco Bisogno
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  2. Beatriz Cuadrado-Ballesteros
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Correspondence to Marco Bisogno .

Editor information

Editors and Affiliations

  1. Department of Accountancy, University of Malta, Msida, Malta

    Josette Caruana

  2. Department of Accounting and Finance, University of Zaragoza, Zaragoza, Spain

    Isabel Brusca

  3. Department of Economics “Marco Biagi”, University of Modena and Reggio Emilia, Modena, Italy

    Eugenio Caperchione

  4. Department of Business Administration, Athens University of Economics and Business, Athens, Greece

    Sandra Cohen

  5. Department of Management and Innovation Systems, University of Salerno, Fisciano, Italy

    Francesca Manes Rossi

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Bisogno, M., Cuadrado-Ballesteros, B. (2019). The Role of Public Sector Accounting on Financial Sustainability and Governmental Effectiveness. In: Caruana, J., Brusca, I., Caperchione, E., Cohen, S., Manes Rossi, F. (eds) Financial Sustainability of Public Sector Entities. Public Sector Financial Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-06037-4_7

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