volume 32, issue 3, P234-250 2017
DOI: 10.1108/maj-05-2016-1371
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Sandra Cohen, Antonella Costanzo, Francesca Manes-Rossi

Abstract: Purpose This study aims to analyze whether and how a set of financial ratios calculated on the basis of financial statement information would allow auditors of Italian local governments (LGs) to get an indication of LGs’ financial distress risk and, hence, to support politicians and managers in promptly detecting financial distress. Design/methodology/approach A model comprising a set of financial indicators that would distinguish distressed from not distressed LGs through a logistic regression approach has…

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