Accounting researchers have performed many studies related to public sector budgeting and financial management. Public sector accounting research seeks to explain the role…
Accounting researchers have performed many studies related to public sector budgeting and financial management. Public sector accounting research seeks to explain the role of accounting and auditing in the public sector. For example, researchers examine issues such as (1) the use of accounting information by elected officials, (2) the demand for auditing, and (3) the determination of bond ratings. This review of the public sector accounting literature describes some of the theoretical foundations utilized in public sector accounting research and reviews a sample of selected empirical studies.
Access to higher education for Black men has increased since the 1980s, yet they are not enrolling or graduating from institutions of higher education (IHE) at a rate…
Access to higher education for Black men has increased since the 1980s, yet they are not enrolling or graduating from institutions of higher education (IHE) at a rate comparable to that of their female counterparts. Black males represent a mere 36 percent of the Black college student population in all IHEs and only 32 percent in historically Black colleges and universities. Research shows that the problems on many college campuses can be linked to the status and perceptions of Black men in society as a whole, lack of financial assistance, inadequate learning and supportive environments, and insufficient culturally appealing venues for student engagement. This chapter will delineate the salient factors that affect the success of Black men in higher education and will offer strategies that IHEs can use to increase the success of their Black male students.
The relationship between the size of state audit budgets, audit responsibilities, professional characteristics of staff, risk, and tax and expenditure limitations is…
The relationship between the size of state audit budgets, audit responsibilities, professional characteristics of staff, risk, and tax and expenditure limitations is explored. Bivariate relationships are examined and then a model is estimated which controls for size, complexity, financial risk factors, and political risk factors. This provides a framework for considering the incremental influence of specialized audit inputs. Both "brand names" and size have been used in past research to proxy for quality dimensions intended to differentiate the audit product provided by different suppliers. This research extends such work by considering characteristics of the auditing services as reflected by specific inputs and by using cost data rather than audit fee data. The states are observed to differ in their responses to financial and political factors by spending resources on peer review, continuing professional education, certifications of professional staff, and expertise in both the computer science area and in law. A positive association of cost and auditor differentiation, implicit in past audit fee literature is corroborated.
Bond rating studies have received and continue to receive considerable attention in the literature on government finance. This study focuses on two major issues of municipal bond ratings that occupy the center-stage of these discussions: What charac-teristics does a rating institution analyze when assigning rating to a government? How significant are these characteristics in predicting the ratings given by these institutions? Using a combination of economic, financial, and demographic factors, the study reexamines these questions on a select group of cities.
Municipal financial decisions involve the interaction of political actors (including voters, elected officials, and bureaucrats) pursuing their own interests. Although…
Municipal financial decisions involve the interaction of political actors (including voters, elected officials, and bureaucrats) pursuing their own interests. Although voters should determine public choices through elected officials, bureaucrats have the incentives and may have the monopoly power to dominate the process. This study investigates the relationships among municipal spending, fiscal manipulation, and financial monitoring. Fiscal illusion (as measured by revenue complexity) is employed as an empirical surrogate for bureaucratic manipulation and it is hypothesized that financial audits are an effective monitoring technique for moderating possible bureaucratic manipulation. The results of the study suggest that expenditure levels are related to political power and that fiscal illusion is significant for explaining expenditure levels, especially for cities having qualified opinions. Weak support is provided for the hypothesis that the financial audit is a monitoring technique that may constrain bureaucratic overspending. These findings have important implications for both public administration and governmental accounting and suggest the need for further research on monitorig effectiveness.
Two competing hypotheses have been developed in the public economics literature to explain the growth of government spending. The first, termed the fiscal illusion hypothesis, holds that governments have incentives to induce a misperception in the population about the cost of government. By constructing complex systems of taxation that obscure the true cost of government services, governments can lead the taxpayer to demand a larger quantity of services. The other hypothesis, the fiscal stress hypothesis, holds that tax complexity diversifies revenues, leading to less revenue variability and, hence, lower costs. Taxpayers, then, demand more government services. The two hypotheses make very different assumptions about the incentives of governments in regard to an informed electorate. The fiscal illusion hypothesis suggests incentives to obscure information, while the fiscal stress hypothesis suggests incentives to reveal true costs.
Accounting and financial reporting can play a role in revealing fiscal information to taxpayers, directly or indirectly, through information intermediaries. If the fiscal illusion hypothesis describes the behavior of governments, we would expect that such governments would attempt to protect the information advantage that is conveyed by a complex tax structure by minimizing accounting disclosures. On the other hand, the fiscal illusion hypothesis suggests that a government with a complex tax structure has no reason to minimize disclosure, and may have incentives publicize lower service costs.
This study examines the association of tax complexity and financial disclosure. We find that there is more disclosure in cities with more complex tax systems, a result that supports the fiscal stress hypothesis.
This study examines possible influences on the level of collaboration in published research by the most productive authors of accounting literature. Understanding the…
This study examines possible influences on the level of collaboration in published research by the most productive authors of accounting literature. Understanding the collaboration tendencies of these authors should benefit early-career-stage accounting faculty. Seven factors are examined for the publications of 93 of the most productive accounting authors. These productive authors are found to include fewer coauthors on their publications early in their careers. The number of coauthors increases through their first 16 to 17 years and then decreases through the remainder of their careers. The results also indicate that productive accounting researchers include a greater number of coauthors on more recently published articles and on longer articles. Fewer coauthors are included when a productive author is affiliated with a “top-10” university or on articles published in highly ranked accounting journals. Lastly, the results show that prolific authors seek out coauthorship throughout their careers and usually include one or more coauthors on their publications. Implications from these results and specific suggestions for accounting faculty are discussed.