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The purpose of this paper is to review and analyze the literature on consolidated financial statements (CFS) in the public sector published from 1980 to 2015 in public sector accounting and management journals, and propose a future research agenda.

Adopting a structured literature review methodology, the authors investigate how the CFS literature is developing and what its focus is.

The authors identify five major topics: the definition of the consolidation area; the identification of the reporting entity; the private vs public sector accounting standard dichotomy; the relationship with the statistical rules; and the usefulness of CFS.

The authors analyze these topics, highlighting the growing implementation of CFS in different contexts (mainly focusing on governments outside the USA) and provide suggestions for future research.

The purpose of this paper is to investigate budgetary solvency (BS) as a part of the financial condition of local governments (LGs), considering that the growing demand for public services is primarily affecting this variable.

The study investigates a sample of 132 Italian LGs with more than 50,000 inhabitants for the period 2005–2014. The authors obtain a set of indicators as proxies of BS, which serve as the dependent variable of a regression model aimed at testing several independent variables which the authors are interested in, namely, financial autonomy, current equilibrium, level of indebtedness and investments.

BS, as well as its three indicators—sustainability, flexibility and vulnerability—are positively related to financial autonomy and current equilibrium and negatively related to the level of indebtedness and investments.

To cover citizens’ demands for public services guaranteeing sound financial management, policymakers are advised to control both the balance between current revenue and expenses and the level of indebtedness while preserving financial autonomy from external sources.

This study adds fresh insight to the literature on financial health, emphasising the relevance of public financial management.

Intellectual capital (IC) is attracting increasing attention from scholars and practitioners in the private sector, while research in the public sector is still in its embryonic stage, especially in regards to local governments. The purpose of this paper is to fill this gap by channelling conceptual and empirical findings from the large body of IC literature.

The research investigates IC in action in the local government domain. A survey has been carried out involving both managers and politicians of all Italian local governments (ILGs) with more than 40,000 inhabitants. In order to define the constituents of each IC dimension perceived by ILGs, principal component analysis was used in investigating the results.

Results highlights how IC components are perceived in ILGs: human capital is a combination of aptitudes in pursuing target performances, sense of ownership and motivations; relational capital is a combination of values, relationships and acts; structural capital includes procedures and routines supporting the decision-making process, the ability of achieving objectives and handling changes.

While the research findings are limited due to being based on a survey in a single country, they present opportunities for future research regarding further testing of how IC is perceived in LGs in different context. The conclusion could be beneficial also for standard setters, providing a path to support the IC disclosure by LGs.

The paper contributes to a narrow strand of research – IC in LGs – adding new knowledge in “IC in action” research stream.

This study investigates the transparency of budgets by examining its relationship with financial sustainability, which is a central area of research in the public-sector context.

Referring to the public value framework, a large sample of 110 countries has been investigated, implementing econometric models where the dependent variable is the Open Budget Index (OBI), published by the International Budget Partnership (IBP), and the test variables are different indicators of financial sustainability.

The results that emerge from the analysis suggest that budget transparency could be positively associated with the financial sustainability of governments, beyond the traditional aims of enhancing citizens' trust and participation.

This research offers important insights for policy areas, suggesting that improving budget transparency could be beneficial for public administrations because of the positive association with financial sustainability.

Research dealing with earnings management in the public-sector context is expanding. This paper aims to review the existing literature to understand how research is developing and points out gaps deserving further investigation.

This study uses the structured literature methodology to investigate the state-of-the-art and future directions of the literature on earnings management in the public sector. In total, 78 articles were explored.

The critical analysis of the literature shows that different but related streams of literature are emerging, focused on both a macro- and a micro-level perspective (mainly local governments and state-owned enterprises).

This study is the first that offers a comprehensive review of the literature on the emerging topic of earnings management in the public-sector context. The structured literature review enables the identification of future directions for the literature in this field.

The purpose of this paper is to investigate the possible influence of financial health of local governments (LGs) on the re-election of politicians.

The study investigates a sample of 129 Italian LGs with more than 50,000 inhabitants for the period 2008–2014, resulting in 903 observations. A regression model has been implemented, where the dependent variable refers to the probability of re-election, and different dimensions of financial health are the independent variables.

Budgetary and service-level solvency influence positively the probability of re-election of the major, while the ability of the government to generate liquidity to pay its short-term debts is not statistically relevant. Moreover, the sustainability dimension of budgetary solvency is more relevant than the flexibility and vulnerability dimensions.

To be re-elected, local politicians are advised to pay attention to and preserve the social welfare of citizens with the available resources.

This study adds fresh insight to the literature on financial health, emphasising the relevance of public financial management in the re-election of local politicians.

The purpose of this paper is to examine earnings management practices in local governments (LGs). The implementation of accrual accounting in LGs opens the way for empirical research on the topic, as reporting high surpluses or high deficits can be negatively interpreted by the central government, monitoring authorities, citizens and political opponents. According to public choice theory, the conflicting interests between politicians, who pursue re-election, and voters, who observe politicians’ actions to assess their alignment with social welfare, create fertile ground for earnings management practices.

The study calculates discretionary accruals, by using the Jones (1991) model, and relates them to several political variables. It employs a large sample of Greek and Italian LGs. The Greek database covers the period from 2002 to 2015 with about 4,300 observations, and the Italian database includes the period from 2008 to 2015 with about 1,130 observations.

The findings from the analysis give evidence that LGs engage in earnings management. The principal factor is the electoral cycle, as earnings management seems to be greater when the mayor is re-elected than when the mayor is elected for the first time. Furthermore, the period before elections create conditions that cultivate earnings management attitudes.

Previous studies have principally investigated earnings management in the private sector. Considering that many public-sector entities have implemented accrual accounting systems, this study intends to examine earnings management behaviour at the LG level, providing interesting findings for researchers and policy makers.

A better understanding of the political factors and the financial conditions, which act as obstacles or facilitators, should work hand in hand with the accounting reforms. The usefulness of financial statements for decision making and control presupposes that they are of high quality, an attribute that can be impaired by earnings management.

This study investigates the influence of political factors on earnings management behaviour in public-sector contexts where self-interest and accountability pressures coexist.

This study was aimed at testing whether the technology transfer performance of Romanian public research institutes—measured as the ability to generate patented technology—was positively related to institutional, human, commercial and financial factors.

A non-negative integer count data model was implemented to investigate a large sample of Romanian public research institutes in the period 2012–2019.

The results confirmed the positive influence of qualified human resources and commercial resources (technology transfer offices and spinoffs). Institutional factors were also relevant alongside the research field.

The paper has limitations inherent to an investigation conducted in an emerging economy, with a low innovative culture and little interest in technology transfer. Although the analysis focused on a specific country, the findings obtained may be extended to other contexts.

To increase their technology transfer, managers of public research institutes and governmental authorities are suggested to implement structural changes and incentives regarding the skilled human capital, the entrepreneurial knowledge and efforts, and the provision of financial resources.

Results showed that emerging innovator countries, such as Romania, should stimulate human capital to get involved in commercial activities, as interactions between public research institutes and the private sector generate economic, social, and environmental benefits.

This study concentrated on the performance evaluation of research and development activities carried out by public research institutes. Therefore, it contributes to a broad strand of literature which has essentially focused on universities, paying less attention to the contributions to scientific research of other organisations, such as public research institutes.

This study investigates the perceptions of intellectual capital (IC) among senior managers at Italian local healthcare units (LHUs) and the interrelations among IC components. It also provides a comprehensive definition of IC in the healthcare context and managerial guidance on improving IC to enhance LHU performance.

A survey was carried out to investigate perceptions among LHU senior management and identify characteristics of each primary IC component. The pilot study's results were examined using principal component analysis.

The findings illustrate senior management's perceptions of IC in LHUs and the extent to which management identifies and manages IC. A comprehensive definition of IC components in the healthcare sector is derived from these findings.

The research provides a better understanding of IC in the healthcare context and facilitates further research into how IC may be incorporated in quotidian organizational procedures. Results suggest that LHU managers should invest in increasing trust and respect and engage employees in organizational processes to provide recognition for the active role they play. Ongoing management of the three primary IC components is shown to have clear advantages, particularly on their connectivity.

The paper contributes to an increasingly important strand of theoretical research – IC in the healthcare context – and also adds new knowledge on the practical applications of IC in LHUs.

It is important to have a literature review to open any special issue as a way of introducing the state-of-the-art topics and link past research with the papers appearing in this special issue on IC in education. The paper aims to discuss this issue.

This research uses the structured literature to investigate the state-of-the-art and future directions of IC literature in education. In total, 47 articles are explored including nine from this special issue.

IC in education research is concentrated in Europe and mainly addresses IC in universities. Additionally, current IC research is progressing by examining IC practices inside universities using a third-stage IC approach, with new research also concentrating on third-mission outcomes, thus there is scope to continue IC and education research beyond universities. IC in education can also expand into fifth stage IC research, which abandons the boundaries of the educational institution and concentrate on the impact of IC and education on multiple stakeholders.

Current IC in education research is too narrow and mainly investigates IC in European contexts using case study methodology. However, there is ample scope to widen research that develops new frameworks in different educational and country contexts using a wider range of research methodologies. IC in education needs to expand its boundaries so it does not lose its relevance, and thus be able to contribute to wider policy debates.

This paper presents the current state-of-the-art structured literature review of the articles investigating IC in education.