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.

Anessi Pessina, E., Nasi, G., Steccolini, I., ACCOUNTING REFORMS: DETERMINANTS OF LOCALGOVERNMENTS CHOICES, <<FINANCIAL ACCOUNTABILITY & MANAGEMENT>>, 2008; 24 (3): 321-342 [http://hdl.handle.net/10807/20566]

ACCOUNTING REFORMS: DETERMINANTS OF LOCAL GOVERNMENTS CHOICES

Anessi Pessina;
2008

Abstract

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.
Inglese
Anessi Pessina, E., Nasi, G., Steccolini, I., ACCOUNTING REFORMS: DETERMINANTS OF LOCALGOVERNMENTS CHOICES, <<FINANCIAL ACCOUNTABILITY & MANAGEMENT>>, 2008; 24 (3): 321-342 [http://hdl.handle.net/10807/20566]
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/20566
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact