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1 – 10 of over 8000Carolyn J. Cordery and David Hay
New public management (NPM) has transformed the public sector auditing context, although in quite different ways. Further, investigations into NPM’s impact on public sector…
Abstract
Purpose
New public management (NPM) has transformed the public sector auditing context, although in quite different ways. Further, investigations into NPM’s impact on public sector auditors and audit institutions have been largely unconnected, with the exception of the critical examination of performance audits. We investigate the question of how public sector auditors’ roles and activities have changed as a result of NPM and later reforms.
Design/methodology/approach
We examine and synthesise public sector audit research examining reforms since the year 2000. The research presented considers changes to external and internal public sector audits as well as the development of public sector audit institutions – known as supreme audit institutions (SAIs).
Findings
Considerable changes have occurred. Many were influenced by NPM, but others have evolved from the eco-system of accounting, auditing and public sector management. External auditors have responded to an increase in demand for accountability. Additional management and governance techniques have been introduced from the private sector, such as internal auditing and audit committees. NPM has also led to conflicting trends, particularly when governments introduced competition to public sector auditing by contracting out but then chose to centralise to improve accountability. There is also greater international influence now through bodies like the International Organisation of Supreme Audit Institutions (INTOSAI) and similar regional bodies.
Originality/value
NPM reforms and the eco-system have impacted public sector auditing. Sustainability reporting is emerging as an area requiring more auditing attention; auditors also need to continue to develop better ways to communicate with citizens. Further, research into auditing in non-Western nations and emerging technologies is also required, especially where it provides learnings around more valuable audit practices. Empirical evidence is required of the strengths and weaknesses of SAIs’ structural variety.
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This paper investigates to what extent public sector entities (PSEs) in developing countries (DCs) are compliant with IPSAS and examines the impact of the socioeconomic and…
Abstract
Purpose
This paper investigates to what extent public sector entities (PSEs) in developing countries (DCs) are compliant with IPSAS and examines the impact of the socioeconomic and politico-administrative environment on this compliance during the period 2015–2018.
Design/methodology/approach
This research develops a self-constructed checklist consisting of 116 disclosure items from five accrual-based IPSAS (IPSASs, 1, 2, 3, 14 and 24) and applies panel regressions for a sample of 500 entity-year observations of 125 PSEs.
Findings
The study results show a high level of disparity in the degree of compliance with IPSAS amongst DCs' governments, with an overall average level of 61%. They reveal that compliance with IPSAS is positively influenced by the level of citizen wealth, government political culture (degree of government openness) and the quality of public administration, whereas jurisdiction size, government financial condition and political competition are non-significant factors.
Practical implications
This research provides researchers and practitioners with a comprehensive framework for understanding the extent of New Public Management reforms in DCs with a focus on International Public Sector Accounting Standards implementation. It might assist policymakers in their accounting strategies and might be a signal for DCs with low compliance to tap lessons from governments with successful experience of IPSAS adoption.
Originality/value
Focusing on DCs' context, this paper brings new insights into the analysis of socioeconomic and politico-administrative incentives for government compliance with IPSAS. It is the first to investigate the impact of citizen wealth and political competition on IPSAS disclosures.
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Margit Malmmose and Mai Skjøtt Linneberg
The objective of this study is to examine developments in the discursive practice of non-financial reporting in the public healthcare sector. In doing so, the authors investigate…
Abstract
Purpose
The objective of this study is to examine developments in the discursive practice of non-financial reporting in the public healthcare sector. In doing so, the authors investigate how the main reform foci of productivity and quality are represented, with a specific focus on the patient.
Design/methodology/approach
Drawing on critical discourse analysis (CDA), the authors conduct a longitudinal study (2007–2018) of healthcare reporting foci across the five administrative regions responsible for public hospitals in Denmark. The study analyses sixty annual reports and draws on contemporary reform documents over this period. CDA enables a micro-textual analysis, combined with macro-insights and discussions on social practice.
Findings
The findings show complex webs of presentation strategies, but in particular two changes occur during the period. First, the patient is centred throughout but the framing changes from productivity and waiting lists to quality and dialogue. Second, in the first years, the regions present themselves as actively highlighting financial and quality concerns, which changes to a passive and indirect form of presentation steered by indicators and patient legislation enforced by central government. This enhances passivity and distance in healthcare regional non-financial reporting where the regions seek to conform to such demands. Simultaneously, however, the authors find a tendency to highlight very different local initiatives, which shows an attempt to go beyond a pure automatic mode of reporting found in earlier studies.
Originality/value
Responding to the literature on both healthcare and financial reporting, this study identifies novel links between micro-level texts and macro-level social practices, enabling insights into the potentially intertwined impacts of public-sector reporting. The authors offer insights into the complexity of the construction of non-financial reporting in the public sector, which has a wider impact and different intentions than private-sector reporting.
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Thusitha Dissanayake and Steven Dellaportas
This study examines accounting reform in the Sri Lankan public sector using an actor–network perspective. The study is particularly concerned with the role of the Institute of…
Abstract
Purpose
This study examines accounting reform in the Sri Lankan public sector using an actor–network perspective. The study is particularly concerned with the role of the Institute of Chartered Accountants Sri Lanka (ICASL) in building networks of organisational actors in the diffusion of Sri Lankan Public Sector Accounting Standards (SLPSAS).
Design/methodology/approach
The empirical data draws on interviews with key actors to understand the role of ICASL in the diffusion of SLPSAS. Twenty-two semi-structured interviews were conducted with members of ICASL and senior public sector officers. The data were analysed based on the four stages underlying the translation process: problematisation, interessement, enrolment and mobilisation.
Findings
The data suggest that ICASL became a lead player in the diffusion of public sector accounting standards because of its superior technical capability. ICASL cultivated a way of thinking about accrual accounting by executing relational influence generated through professional knowledge, and connections with the government and public sector accountants.
Research limitations/implications
Findings should be interpreted with caution; data are limited by the subjective interpretation of data. By concentrating on the role of ICASL, the role and influence of other key actors may be overlooked.
Originality/value
This study contributes to the literature on how innovations transform accounting practice through the lens of the ICASL. The result builds on evidence explaining why provincial governments and public sector governments were hesitant to adopt SLPSAS despite central government directives.
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Ane Haugdal, Frode Kjærland, Levi Gårseth-Nesbakk and Are Oust
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian…
Abstract
Purpose
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian authorities provides the opportunity for an empirical study.
Design/methodology/approach
The authors adopt a two-stage strategy to investigate the existence of earnings management, using the Jones (1991) and modified Jones (Dechow et al., 1995) models to construct a random-effects model.
Findings
The authors test the hypothesis that, given decentralisation of control, there will be an increase in opportunistic financial reporting. This study's findings suggest that this is not the case, thereby indicating that a soft control regime does not diminish discipline in municipalities.
Practical implications
This study has practical implications for policymaking in the public sector. Its findings suggest that municipalities do not engage in more earnings management under a soft regulatory regime. Hence, other authorities should consider adopting a soft regulatory approach to controlling local governments and their financial reporting systems.
Originality/value
This study contributes to a growing body of literature regarding earnings management by local governments. The authors investigate a hypothesis previously untested in the literature by comparing the degree of earnings management under different regulatory control regimes.
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Michalis Bekiaris, Thekla Paraponti and Foteini Spanou
This paper develops and tests a theoretical model that draws on the Diffusion Contingency Model and the Theory of Human Behavior to explain the factors influencing users’…
Abstract
Purpose
This paper develops and tests a theoretical model that draws on the Diffusion Contingency Model and the Theory of Human Behavior to explain the factors influencing users’ acceptance of accrual accounting in terms of two distinct dimensions: behavioral intention and usage behavior.
Design/methodology/approach
Based on surveyed data from financial departments and directorates of different Greek general government entities, the paper uses factor analysis to build a theoretical model that assesses the factors influencing behavioral intention to adopt and usage behavior of accrual accounting. Then, it tests the relationship between behavioral intention and usage behavior through structural equation modeling.
Findings
The theoretical model suggests that the expected improvement of the quality of financial information and political and financial support are the most important determinants of behavioral intention. Usage behavior is mainly influenced by the compatibility between the existing legal framework and the new accounting system. The structural equation modeling identifies a statistically significant positive influence of behavioral intention on usage behavior.
Practical implications
The study provides valuable insights regarding the timing and focus of the actions taken by policymakers when designing accounting reforms. Special attention is drawn to the factors influencing behavioral intentions, as these are found to influence usage behavior significantly.
Originality/value
The study extends prior research on the diffusion of accounting innovations by breaking down the diffusion process into intentions-oriented actions aiming to promote accrual accounting and increase acceptance and implementation-oriented actions aiming to facilitate successful implementation.
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A large number of studies indicate that coercive forms of organizational control and performance management in health care services often backfire and initiate dysfunctional…
Abstract
Purpose
A large number of studies indicate that coercive forms of organizational control and performance management in health care services often backfire and initiate dysfunctional consequences. The purpose of this article is to discuss new approaches to performance management in health care services when the purpose is to support innovative changes in the delivery of services.
Design/methodology/approach
The article represents cross-boundary work as the theoretical and empirical material used to discuss and reconsider performance management comes from several relevant research disciplines, including systematic reviews of audit and feedback interventions in health care and extant theories of human motivation and organizational control.
Findings
An enabling approach to performance management in health care services can potentially contribute to innovative changes. Key design elements to operationalize such an approach are a formative and learning-oriented use of performance measures, an appeal to self- and social-approval mechanisms when providing feedback and support for local goals and action plans that fit specific conditions and challenges.
Originality/value
The article suggests how to operationalize an enabling approach to performance management in health care services. The framework is consistent with new governance and managerial approaches emerging in public sector organizations more generally, supporting a higher degree of professional autonomy and the use of nonfinancial incentives.
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James Guthrie, Francesca Manes-Rossi, Rebecca Levy Orelli and Vincenzo Sforza
This paper undertakes a structured literature review to analyse the literature on performance management and measurement (PMM) in universities over the last four decades. Over…
Abstract
Purpose
This paper undertakes a structured literature review to analyse the literature on performance management and measurement (PMM) in universities over the last four decades. Over that time, PMM has emerged as an influential force in universities that impacts their operations and redefines their identity.
Design/methodology/approach
A structured literature review approach was used to analyse a sample of articles on PMM research from a broad range of disciplines over four decades. This was undertaken to understand the impacts of PMM practices on universities, highlight changes over time and point to avenues for future research.
Findings
The analysis highlights the fact that research on PMM in universities has grown significantly over the 40 years studied. We provide an overview of published articles over four decades regarding content, themes, theories, methods and impacts. We provide an empirical basis for discussing past, present and future university PMM research. The future research avenues offer multiple provocations for scholars and policymakers, for instance, PMM implementation strategies and relationships with various government programs and external evaluation and the role of different actors, particularly academics, in shaping PMM systems.
Originality/value
Unlike a traditional literature review, the structured literature review method can develop insights into how the field has changed over time and highlight possible future research. The sample for this literature review differs from previous reviews in covering a broad range of disciplines, including accounting.
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Maria Eriksson, Therese Eriksson and Elisabet Jonsson
This paper aims to explore and develop knowledge about implementing and applying a quality management system (QMS) in the public sector.
Abstract
Purpose
This paper aims to explore and develop knowledge about implementing and applying a quality management system (QMS) in the public sector.
Design/methodology/approach
A study was conducted including 16 qualitative in-depth interviews with 18 respondents, all working with QMSs in the Swedish public sector.
Findings
The study identified five main themes that are problematic in relation to the implementation of the statutory QMS in the public sector. The identified themes show that there exists a gap between theory and practice regarding how the statutory QMS needs to be implemented and applied.
Practical implications
Based on the analysis of the findings, the authors propose a model of core values and supporting elements for QMS in the public sector to bridge the gap between theory and practice.
Originality/value
The study identified problems when implementing statutory QMSs in the public sector and presents a model of improvement. Further research is needed regarding statutory QMS in the public sector.
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Akwasi A. Ampofo, Reza Barkhi and Joseph Nketia
We develop and test an innovative approach to teaching financial statement analysis (FSA) and assessing student learning outcomes based on making complex stock investment…
Abstract
We develop and test an innovative approach to teaching financial statement analysis (FSA) and assessing student learning outcomes based on making complex stock investment decisions compared to professional analysts. We train students to apply FSA and emphasize interdisciplinary factors and high integrative complexity. Our innovative FSA teaching approach, which we apply in an MBA financial reporting course, involves the instructor lecturing on FSA as a tool for integrative and complex decision making, students researching and applying FSA to public companies, and presenting the rationale for individual and group stock investment decisions. The instructor gives high-quality and timely feedback on the students’ application of FSA with a focus on investment judgments involving critical thinking, problem-solving, and teamwork skills. Our detailed efficacy analysis shows that our FSA teaching approach is effective. Students who perceive a public company to have credible management, effective competitive strategy, and an acceptable level of financial flexibility make comparable individual and group stock investment decisions as professional analysts.
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