Risk Factors and Drivers of Financial Sustainability in Local Government: An Empirical Study

Bolívar, Manuel Pedro Rodríguez; Galera, Andrés Navarro; Muñoz, Laura Alcaide; Subirés, María Deseada López

doi:10.1080/03003930.2015.1061506

Cited by 116 publications

(81 citation statements)

References 30 publications

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“…On the other hand, the significant influence of this variable on the public debt has not been demonstrated [45]. In fact, there are previous studies that have not found any influence of the population density on the financial sustainability of local governments [17,48].…”

Section: Research Hypothesis About Influential Factors On Financial Smentioning

confidence: 91%

“…LGs, consistent with prior research in local public finance [45,48] we have chosen to examine solely LGs consider as large LGs. The Local Government Regulatory Act 7/1985, amended by the Local Government Modernization Act 57/2003 (Article 121), defined them as those with a population of over 50,000 inhabitants, together with those which, although smaller in terms of numbers, are classified as "large population" under of, i.e., municipalities that are provincial capitals, regional capitals or in which the headquarters of regional institutions are located.…”

Section: Samplementioning

confidence: 99%

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The Influence of Socio-Demographic Factors on Financial Sustainability of Public Services: A Comparative Analysis in Regional Governments and Local Governments

et al. 2019

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In recent years, financial sustainability (FS) of public policies has become a key concept in all governmental levels due to the need for ensuring public services delivery for future generations. Prior research has been focused on the financial sustainability in local governments (LGs) although its findings suggested the need to analyze this magnitude in other levels of government because political decisions could be different in each type of public entity. So, FS has also become very relevant in the Regional Government (RGs) context because their public policies affect not only at the regional level but also the local one. Therefore, from a comparative approach, this paper seeks to identify socio-demographic factors which could influence on the financial sustainability, in the Spanish context for both LGs vs. RGS in order to establish public policies to make sustainable public goods and services. Findings demonstrate that differences in influential factors between these two levels of public administration exist: factors such as population size and foreign population could have an effect on the financial sustainability of both governmental levels while the unemployment rate, dependent population, and population density affect differently on LGs and RGs.

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Section: Research Hypothesis About Influential Factors On Financial Smentioning

confidence: 91%

Section: Samplementioning

confidence: 99%

The Influence of Socio-Demographic Factors on Financial Sustainability of Public Services: A Comparative Analysis in Regional Governments and Local Governments

et al. 2019

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“…Local government needs to provide adequate resources for high economic growth, sustainable development and environmental activities. However, in many countries, financial crises reduce public financial support that creates an imbalance between social activities, sustainable development and public finance (Rodríguez Bolívar et al, 2016). In emerging economies such as China, government incentives and support are very vital for the promotion of sustainability practices, new startups and poverty alleviation (Wu & Si, 2018).…”

Section: Government Incentives and Sustainable Development Goalsmentioning

confidence: 99%

The Nexus of Government Incentives and Sustainable Development Goals: Is the Management of Resources the Solution to Non-Profit Organisations?

Anwar

Khattak

Popp

et al. 2020

Technological and Economic Development of Economy

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Sustainable Development Goals (SDGs) have become the main priority across the globe due to their significant role in economic growth and propensity. However, in particular, it is not yet known how governments can achieve SDGs through non-profit organisations (NPOs) by providing financial and non-financial incentives. The present study included 263 Pakistan NPOs in a primary survey using a questionnaire. The results obtained from the Structural Equation Modelling (SEM) highlight that: (i) government incentives do not directly influence community development; (ii) The government non-financial incentives have a significant direct effect on environmental activities to reduce pollution, energy consumption and waste; (iii) Resource management fully mediates the paths between government incentives and community development while partially mediates environmental activities; and finally, (iv) resource management has a favourable influence both on the goals of community development and environmental activities. This research paper contributes to the knowledge in that government incentives do not have a direct influence on social development, but has an indirect influence through efficient management. Recommendations are that government and public bodies need to support NPOs to engage actively in philanthropic activities. Similarly, NPOs should efficiently utilize and manage the resources to benefit the maximum number of poor and needy individuals.

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“…Rural communes recorded the highest budget deficit (a total of PLN 3436.3 million-EUR 860.2) in 2010. In 2009-2011, a budget deficit was reported by 70% of all rural communes [30]. However, the way the funds derived from the deficit are spent sometimes fails to comply with that rule.…”

Section: Functioning Of Polish Rural Communesmentioning

confidence: 99%

“…They noted the importance of the decision to analyze, interpret, and present the financial condition to selected officials and to see what management practices help in the analysis of financial conditions. The recent interest in the issue of the financial risk of communes has increased, as evidenced by recent research in all the world, e.g., in China- [28], in Hungary- [29], in Spain- [30], in Poland- [31].…”

Section: Introductionmentioning

confidence: 99%

Identifying the Financial Risk Factors of Excessive Indebtedness of Rural Communes in Poland

Standar

Kozera

2020

Sustainability

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The purpose of this paper is to identify the financial risk factors of excessive indebtedness of Polish rural communes. The objective of this research task is to verify the following research hypothesis: the main determinant of the risk of excessive indebtedness is the rural communes’ own income potential. To meet the objective of this research, an empirical study was carried out in three steps. The first step of the research procedure was the analysis of the operation of Polish rural communes in the context of financial management. In the second step was the analysis of indebtedness of rural communes compared to other types of Polish administrative units in 2007–2017. The evolution of the level and share of total debt in total incomes of entities studied was analyzed, and the share of overindebted rural communes was identified. In the third step, a discriminatory analysis was performed to build a model able to forecast the financial risk factors of excessive indebtedness for Polish rural communes. The problem of increasing indebtedness can be observed in a growing number of communes and on an increasing scale in Poland. The discriminant analysis showed that the share of the operating surplus and own income in total income, as well as the amount of the EU funds per capita (in zlotys), are particularly significant. The study reveals that the smaller the share of the operating surplus in total income is as well as the greater the share of own income in total income and the amount of the EU funds in zlotys per capita are, the lower the value of the estimated discriminatory function is and the higher the risk of excessive indebtedness of a rural commune is.

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Risk Factors and Drivers of Financial Sustainability in Local Government: An Empirical Study

Cited by 116 publications

References 30 publications

The Influence of Socio-Demographic Factors on Financial Sustainability of Public Services: A Comparative Analysis in Regional Governments and Local Governments

The Influence of Socio-Demographic Factors on Financial Sustainability of Public Services: A Comparative Analysis in Regional Governments and Local Governments

The Nexus of Government Incentives and Sustainable Development Goals: Is the Management of Resources the Solution to Non-Profit Organisations?

Identifying the Financial Risk Factors of Excessive Indebtedness of Rural Communes in Poland

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