Conceptualizing Financial Condition In Local Government

Rivenbark, William C.; Roenigk, Dale J.; Allison, Gregory S.

doi:10.1108/jpbafm-22-02-2010-b001

Cited by 76 publications

(109 citation statements)

References 9 publications

(10 reference statements)

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“…Previous research has highlighted that the financial sustainability is a complex and multidimensional concept by definition [27][28][29][30][31]. In this sense, Wang et al [31] tried to measure financial condition, using four dimensions in cash, budget, long-run and service-level solvencies and eleven financial condition indicators.…”

Section: Dependent Variablementioning

confidence: 99%

“…In parallel, other studies have analyzed factors influencing the tax burden [24,25], and public debt [6,26]. Although to date, previous literature [27] highlighted the continuing effects of the economic crisis on the financial local governments health and some studies have tried to measure it [28][29][30][31], the analysis of the explanatory variables of financial sustainability of local governments requires more attention [2,32], especially about variables such as human capital, companies' developments, unemployment, economic level or population structure, which motivates the opportunity and interest of this study.…”

Section: Introductionmentioning

confidence: 99%

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Analyzing Forces to the Financial Contribution of Local Governments to Sustainable Development

et al. 2016

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In many countries, the economic crisis brought high volumes of deficit and debt in public entities, which jeopardized the ability of governments to continue providing public services and caused considerable imbalances of economic growth in different regions. In this context, from the recognition of the linkage between economic development and efficiency in public management, previous research indicates that local governments are called to play a key role in promoting sustainable development through environment, economic and social policies based on financial sustainability of the public services. This paper aims to identify influencing factors on the financial sustainability of local governments, as an indicator of their capacity to maintain the delivery of public services over time. Based on a sample of 139 Spanish municipalities with large population for the period 2006-2014, our findings reveal the influence of variables such as the unemployment rate by sector, the dependent population, the immigrant population and the level of education of the population, on the financial sustainability in local governments, providing new useful knowledge to managers, policymakers, researchers and others stakeholders interested in the sustainability of public services.

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Section: Dependent Variablementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Analyzing Forces to the Financial Contribution of Local Governments to Sustainable Development

et al. 2016

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“…The following terms could be used to describe the negative financial state of a municipality (ACIR, 1985;Kloha et al, 2005;Jones & Walker, 2007): All these terms express a negative financial condition of a municipality. A financial condition is, in a broader sense, described as "the financial ability of a local government to fulfill its obligations (short-term obligations, long-term obligations, operational obligations, and obligations to provide services to the public), to anticipate unexpected events, and to execute financial rights efficiently and effectively" (Groves et al, 1981;Wang et al, 2007;Rivenbark et al, 2009Rivenbark et al, , 2010Ritonga et al, 2012). Ritonga et al (2012) defines the ability to meet financial obligations as having the following features:  The ability to meet short-term and long-term obligations (short-term and long-term solvency);…”

Section: Negative Financial State Of Municipalitiesmentioning

confidence: 99%

Municipal Bankruptcy: Pilot Experience from Czech Republic

Hrůza

2016

RES

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Local governments are important parts of public sector and they play significant role in daily life of residents. Their role is usually underestimated in comparison with central government tasks and responsibilities. Residents usually realize the real importance of municipal role when municipalities are in financial problems or even bankruptcy and for these reasons they have to restrict their services. This research paper focuses on the issue of financially distressed Czech municipalities and relevant financial areas or indicators in period prior financial problems of municipalities similar to a bankruptcy. This case study is specific due to the fact that this country misses bankruptcy legislation for municipalities and small total number of already existing cases of municipal bankruptcy due to limited time period of their higher autonomy after 1989. Thus the research sample of comparable cases is very limited and this paper serves as a pilot case study. The research for this paper is focused on the financial management of municipalities from the perspective of negative financial situations and the preceding phase to reveal and achieve certain preliminary findings and experience as a pilot lesson for financial management improvements and further exploration and research.

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“…That comparison is seen from the ranking conducted by Brown from local government starting from the worst to the best aspects according to each category (Rivenbark and Roenigk, 2011;Rivenbark et al, 2010) [18,19]. Brown's financial condition Measurement comprises of 3 steps, among others are: a.…”

Section: Brown's 10-point Test Financial Measurement Modelmentioning

confidence: 99%

“…The tools of the corresponding test are established specifically for providing a more focused measurement tool regarding financial condition upon a smaller local government (Rivenbark and Roenigk, 2011) [18]. Ten ratios utilized by Brown (1993) [2] consist of 4 financial fundamental factors including revenue (ratio 1-3), expenditures (ratio 4), operation position (ratio 5-7), and debt structure (ratio 8-10) (Ritonga, 2014;Maher and Nollenberger, 2009) [17,8].…”

Section: Brown's 10-point Test Financial Measurement Modelmentioning

confidence: 99%

Design and Analysis of Financial Condition Local Government Java and Bali (2013-2014)

Natrini¹,

Ritonga²

2017

SHS Web Conf.

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This research aims to identify financial condition of local government in Java and Bali year 2013-2014. It is due to government financial condition, according to several researchers, provides an image on the ability of a government in fulfilling their obligations whether in the form of debt or service fulfillment in timely manner. According to assessment upon financial condition, local government is able to identify how to fulfill public needs, how to utilize resources and how to proceed resources so that it can be more productive. As for the measurement method of financial condition itself, the standard method cannot be determined. Therefore, indicator used for measuring local government financial condition is Brown's (1993)[2] indicator development adjusted to Indonesian government. In order to develop the indicator, this research employs qualitative method by comparing GASB No.34, SAP Government Regulation ("Peraturan Pemerintah" -PP) 71 Year 2010, SAP PP 24 year 2005 and literature studies and expert validation. In order to obtain a balanced comparison, this research also employs clusters developed by Baidori (2015)[1] for government in Java and Bali. Results of this research showed that among 7 analyzed clusters, there are variations of results, even though each cluster has similar socioeconomic condition to each other. This variation upon Indonesian local government financial condition is caused by regional autonomy.

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Conceptualizing Financial Condition In Local Government

Cited by 76 publications

References 9 publications

Analyzing Forces to the Financial Contribution of Local Governments to Sustainable Development

Analyzing Forces to the Financial Contribution of Local Governments to Sustainable Development

Municipal Bankruptcy: Pilot Experience from Czech Republic

Design and Analysis of Financial Condition Local Government Java and Bali (2013-2014)

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