scholarly journals The perceived usefulness of financial information for decision making in Portuguese municipalities

2017 ◽  
Vol 18 (1) ◽  
pp. 116-136 ◽  
Author(s):  
Sónia Paula da Silva Nogueira ◽  
Susana Margarida Faustino Jorge
Keyword(s):  
Decision Making ◽  
Local Government ◽  
Empirical Evidence ◽  
Financial Reporting ◽  
Internal Control ◽  
Perceived Usefulness ◽  
Financial Information ◽  
Decision Makers ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to analyse the extent to which the perceived usefulness of financial information for internal decision making is affected by the internal control to which that information is subjected. Design/methodology/approach The research is positivist and quantitative, based on a cross-sectional analysis developed in the local government context. Data were collected from a survey to decision makers (politicians and chief officials) in charge of the financial area in all Portuguese municipalities. The response rate was approximately 49 per cent, assuring representativeness. Findings Regarding the perceived usefulness of financial and budgetary reporting for internal decision making, the results in the paper show that municipalities’ internal users’ attitudes towards using accrual-based financial reporting for decision making is changing. Additionally, internal decision makers consider financial and budgetary information as very useful for decision making, and the different types of internal control applicable to that information as very important. The results also clearly point to the existence of a significant and positive relationship between the internal control (including internal auditing) to which financial and budgetary information is subject, and its perceived usefulness for municipal decision making. Research limitations/implications The main limitations of this study are related to the way in which information was collected in order to obtain empirical evidence. The questionnaire, sent by e-mail, despite reaching a wide-range and dispersed population, cannot guarantee the truthfulness and integrity of the responses. Findings might have been affected by the fact that respondents may have been sympathetic to the reforms brought by the Official Local Government Accounting Plan (POCAL). Certainly, politicians linked to the political party that promoted those reforms would be predisposed in this way. Another limitation might concern the fact that new laws and regulations passed after POCAL, might have somehow affected the answers regarding the perceived usefulness of budgetary and financial information for internal decision making, as well as the importance of the internal control to which that information is subject. Practical implications The results of this study have important repercussions for the implementation of internal control systems at local government level. Particularly, they highlight the need to develop or improve internal control procedures to ensure budgetary and financial information reliability, which in turn determines its usefulness for decision-making purposes. Originality/value This research makes a contribution to the (scarce) literature on the relationship between internal control and the perceived usefulness of financial and budgetary information for decision making, particularly in the local government setting. It adds with further empirical evidence concerning the relationship between these two issues, helping to reinforce previous embryonic research in this field. As to policy making, this research also contributes by calling attention for the need to define the types of internal control financial information must be subject, a critical issue while assuring the usefulness of that information for decision making. This is particular important in current contexts of countries moving towards IPSAS-based financial reporting systems.

Innovation in centralized organizations: examining evidence from Soviet Russia

2014 ◽  
Vol 41 (1) ◽  
pp. 123-139 ◽  
Author(s):  
Dmitriy Chulkov
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Budget Constraint ◽  
Soviet Economy ◽  
Decision Makers ◽  
Economic Systems ◽  
Soft Budget Constraint ◽  
Content Type ◽  
Economic Decision Making ◽  
Constraint Model

Purpose – This study aims to examine the economic factors that determine innovation pattern in centralized and decentralized economies and organizations. Design/methodology/approach – Empirical evidence on innovation in the centralized economy of the Soviet Union is reviewed. Existing theoretical literature in this area relies on the incentives of decision-makers in centralized organizations and on the concept of soft budget constraint in centralized command economies and hard budget constraint in market economies. This study advocates applying the hierarchy/polyarchy model of innovation screening to explain the pattern of innovation in centralized economic systems. Findings – Screening and development of innovation projects can be organized in a centralized or decentralized fashion. The differences in innovation between centralized and decentralized economic systems may be explained by elements of the principal-agent theory, the soft budget constraint model, and the theory of decision-making in hierarchies and polyarchies. Empirical evidence shows a sharp slowdown in both innovation and economic growth in the Soviet economy following the economic decision-making reform of 1965. The theoretical explanation most consistent with this evidence is the hierarchy decision-making model. Originality/value – Comparisons of innovation in centralized and decentralized economies traditionally relied on decision-makers' incentives and the concept of soft budget constraint. Upon analysis of empirical evidence from the centralized Soviet economy, this study advocates explaining innovation patterns based on decision-making theory of hierarchy.

The importance of information service offerings of collaborative CRMs on decision-making in B2B marketing

2019 ◽  
Vol 35 (3) ◽  
pp. 470-482 ◽  
Author(s):  
José Ramón Saura ◽  
Pedro Palos-Sanchez ◽  
Alicia Blanco-González
Keyword(s):  
Decision Making ◽  
Internal Control ◽  
Information Service ◽  
Equation Modeling ◽  
External Control ◽  
Data Set ◽  
Content Type ◽  
B2b Marketing ◽  
Control Factors ◽  
The Relationship

Purpose The importance of information service offerings is directly linked to decision-making processes for buying and selling in business-to-business (B2B) companies. B2B companies intend to offer information that helps other companies choose a product or service. This paper aims to identify the relationship between the types of information offered by a B2B company in its B2B marketing strategy and the decision-making of the companies which buy products and services. Design/methodology/approach For this purpose, a data set has been consulted that contains 439 observations that are the result of transactions using customer relationship managements (CRMs) of B2B-type companies. A total of 9 different products were consulted from 20 B2B vendors that manage their transactions with CRM software for B2B operations. A total of 439 different transactions were recorded by these vendors during 2018 (n = 439) with their information service offerings strategies. The results were analyzed with the partial least squares structural equation modeling. Findings The results showed that the significance of the relationship between internal control factors and external control factors (H4) is the strongest one when using information services offerings strategies in a B2B environment. The results of this research can help B2B companies to improve their decision-making strategies and to define the structure of the information offered in their B2B marketing plans. Originality/value This research makes a contribution to an existing gap, which is to identify what the most important information is for purchasing companies in B2B environments and the relationship with this information, so that B2B purchasers can make good decisions thanks to the information service offerings strategy of the selling companies using CRMs.

One study, four cities: information impact in neighborhood economic development

2020 ◽  
Vol 14 (4) ◽  
pp. 663-680 ◽  
Author(s):  
Jeffrey Carroll
Keyword(s):  
Decision Making ◽  
Economic Development ◽  
Local Government ◽  
Decision Makers ◽  
Government Officials ◽  
Content Type ◽  
Local Decision ◽  
Types Of Information ◽  
Local Decision Makers ◽  
Sophisticated Analysis

Purpose The purpose of this study is to create a theory on how a commissioned study impacts the decision-making of local government officials. Design/methodology/approach This study uses comparative case studies via the “Knowledge Cycle,” which is a method of examining information use for four distinct decision-making environments’ development (Baltimore, Maryland; Louisville, Kentucky; Detroit, Michigan; and Tampa, Florida). Findings This study reports significance in three factors that may explain information impact: the presence of an “information champion” who directs the application of the study toward initiatives that are important to them, the length of time that one can use information before it becomes outdated and the ability to use the study to spur dialogue with development stakeholders outside of local government. Research limitations/implications The limitation to this study is that it is limited to the observation of a specific population (local government economic development bureaucrats) and their use of a specific package of information. The debate is open to whether the findings of this study are relevant to actors using other types of information within other levels of government and within other fields of inquiry. Practical implications Advances in information technology and the proliferation of data intermediaries who can use sophisticated analysis warrant the understanding how government officials interact with the studies that they commission. Originality/value To date, there are few studies that have examined how a singular package of information is used in multiple decision-making environments. This paper adds to this dearth of scholarship while creating theory to how and why local decision-makers may use information.

scholarly journals IFRS adoption, value relevance and conditional conservatism: evidence from China

2019 ◽  
Vol 27 (4) ◽  
pp. 529-546 ◽  
Author(s):  
Cyrus Isaboke ◽  
Yan Chen
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Financial Information ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Conditional Conservatism ◽  
Before And After ◽  
The Relationship ◽  
A Company

Purpose This study sought to evaluate the relationship between value relevance of financial information and conditional conservatism of non-financial companies listed in China. Design/methodology/approach Using panel data comprising of 28,723 firm years, the authors determine the value relevance of financial information before and after mandatory International Financial Reporting Standards (IFRS) adoption while incorporating the relationship with conditional conservatism. The authors further examined how this relationship varies between state and non-state owned companies. Findings Conditional conservatism is positively (negatively) related to value relevance prior (post) to mandatory IFRS adoption while it makes no difference as to whether a company is state or non-state owned, as IFRS has a positive and significant effect on value relevance. Conservatism, on the other hand, has a negative and insignificant relationship with market value of both state and non-state owned firms during the pre- and post-IFRS period. Originality/value By exploring an emerging economy, the authors provide evidence on the variations in value relevance amongst state and non-state owned firms. In particular, the authors establish the positive effect of IFRS on the value relevance of non-state firms as compared to state-owned institutions.

Is the investment decision affected by the independence and competence of the audit committee? A comparative study between Bahrain and Indonesia

2020 ◽  
Vol 21 (1) ◽  
pp. 29-48
Author(s):  
Abdullah Hamza Al-Hadrami ◽  
Ahmad Rafiki ◽  
Adel Sarea ◽  
Muhammad Dharma Tuah Putra Nasution
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Investment Decision ◽  
Investment Decisions ◽  
Cross Sectional ◽  
Content Type ◽  
Investment Decision Making ◽  
The Impact

Purpose This study aims to investigate the impact of the audit committee’s (AC’s) independence and competence in the company’s investment decision-making in Bahraini- and Indonesian-listed firms, then to compare the two results Design/methodology/approach A quantitative method is used and cross-sectional data are collected through a self-administered questionnaire survey. A stratified random sample technique is adopted with a total of 409 respondents from 39 listed companies in Bahrain and 303 respondents from 27 companies listed on the Indonesia Stock Exchange (IDX). A descriptive analysis is used to identify the characteristics of the respondents, while a correlation analysis, linear regression and t-test analyses are used to test the model, explain the relationships among variables and compare the two studies (Bahrain vs Indonesia). Findings It is found that the AC independence and AC competence have a positive and significant influence on investment decision-making for both the Bahrain and the Indonesia studies Practical implications The current study’s results have implications for the process of appointing and nominating the AC members, since this would affect an investor’s investment decision. Investors’ perception of the independence and competence of ACs will make a difference in their investment decisions. Originality/value AC independence and competence are importantly crucial for the decision-makers in improving the quality of financial reporting, internal control, and audit. This may lead to an increase in investors’ trust in financial reports and their ability to make favorable investment decisions.

Presence of financial information in local politicians’ speech

2019 ◽  
Vol 31 (4) ◽  
pp. 558-577 ◽  
Author(s):  
Lotta-Maria Sinervo ◽  
Petra Haapala
Keyword(s):  
Decision Making ◽  
Local Government ◽  
Negative Impact ◽  
Information Use ◽  
Individual Characteristics ◽  
Financial Information ◽  
Content Type ◽  
Financial Position ◽  
Local Politicians ◽  
The Impact

Purpose The highest decision-making body in a municipality is the council, whose members are elected every fourth year. Therefore, local politicians are in the key position in using financial information in decision making. The purpose of this paper is to study Finnish local politicians’ use of financial information. Design/methodology/approach This paper studies the speech of local politicians as they describe financial operations and financial position of the municipalities they represent. Here, the words of local politicians are considered an expression of their use of financial information. The use of financial information includes its impact on decision making. The focus is on the impact of different individual characteristics of financial information use in speech about financial operations and financial position. The paper employs qualitative empirical data collected through semi-structured thematic interviews with members of the Finnish local government. Data are analyzed with descriptive statistical methods. Findings Local politicians use financial information when they talk about financial operations and financial position of their municipality. Individual characteristics, such as political experience, affect the use of financial information. Experienced local politicians are familiar with financial information and use it more systematically than inexperienced politicians. Contrasted to expectations, financial expertise has a negative impact on financial information use. Moreover, in general, the ideology of politicians does not affect their use of financial information. Originality/value The paper sheds light on the value of individual characteristics of financial information use. It develops and tests hypotheses based on previous research on the impact of individual attributes of local politicians in the Finnish local government.

Perception of the Malaysian Federal Government accountants of the usefulness of financial information under an accrual accounting system: a preliminary assessment

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suhaiza Ismail
Keyword(s):  
Decision Making ◽  
Public Sector ◽  
Federal Government ◽  
Work Experience ◽  
Accounting Information ◽  
Perceived Usefulness ◽  
Financial Information ◽  
Accounting System ◽  
Accrual Accounting ◽  
Content Type

Purpose The objective of this study is to examine the perceived usefulness of accrual accounting-based financial information for accountability and for supporting decision-making in public sector organisations. Design/methodology/approach A questionnaire survey adapted from Kober et al. (2010) was used to survey Malaysian Federal Government accountants to ascertain their views on the usefulness of accrual accounting information across 12 situations regarding accountability and decision-making. Mean scores and mean score ranking were computed on a total of 165 usable responses received. The independent t-test was conducted to investigate the differences in the perception between “accountants with” and the “accountants without” prior work experience in the private sector. Findings The study provides evidence that Malaysian Federal Government accountants consider accrual accounting information as very useful for decision-making. The three most important decision-usefulness indicators in the survey are “To assist in managing the department’s assets and liabilities”, “To assess cash flow needs of a department” and “For departmental resource allocation decisions”. The least useful accrual accounting information as perceived by the Malaysian public sector accountants is “To assist in discharging the department’s accountability obligations”. Originality/value The study provides valuable insights into the extent to which accrual accounting information is considered useful for accountability and decision-making, lending support to the Malaysian Government’s reform agenda of moving towards using accrual accounting in public sector organisations at the federal level.

Big Data, digital demand and decision-making

2018 ◽  
Vol 26 (4) ◽  
pp. 541-555 ◽  
Author(s):  
Steve Green ◽  
Earl McKinney Jr ◽  
Kurt Heppard ◽  
Luis Garcia
Keyword(s):  
Decision Making ◽  
Big Data ◽  
Performance Measurement ◽  
Design Methodology ◽  
Consumer Demand ◽  
Decision Makers ◽  
Digital Goods ◽  
Accounting Data ◽  
Content Type ◽  
The Relationship

Purpose This paper aims to discuss the viewpoint that Big Data’s major impacts on the accounting community will be changes in consumers’ demand of accounting data and its impact on decision-making. Big Data is leading consumers to prefer more atomized (not summarized but rather reduced to discrete units), reconfigurable and transparent accounting data that they can combine into their own structures to meet their own decision-making needs. Consequently, consumers will demand digital goods that are less static, and summarized. Design/methodology/approach This paper discusses the strategic shift to what is referred to as “indirect data,” and develops a model that helps explain “how” and “why” Big Data may impact this change in consumer digital demand. Findings There are many evolving Big Data opportunities associated with the shift in consumer demand for more atomized, reconfigurable and transparent accounting data that are discussed in this paper, including strategic capability, auditing, performance measurement and reporting, standardization and education. Originality/value This paper provides a discussion of the evolving opportunities of the relationship that is created by a strategic shift in the type of digital goods consumers of information, specifically decision-makers, will demand, as well as the potential impacts on the accounting community.

scholarly journals Faktor-faktor yang mempengaruhi keandalan dan ketepatan waktu pelaporan keuangan pada Organisasi Perangkat Daerah Kabupaten Sumbawa Barat

2020 ◽  
Vol 2 (2) ◽  
pp. 148
Author(s):  
Een Samawati Miharja ◽  
Lilik Handajani ◽  
Lalu M. Furkan
Keyword(s):  
Information Technology ◽  
Local Government ◽  
Human Resources ◽  
Agency Theory ◽  
Financial Reporting ◽  
Internal Control ◽  
Civil Servants ◽  
Financial Information ◽  
Financial Control ◽  
Purposive Sampling

This study aims to provide empirically the effect of the human resources quality, utilization of information technology, accounting internal control, and financial control on reliability and timeliness of financial reporting on Local Government of West Sumbawa. The sample of this study is 76 respondents that work as civil servants at finance departments of 38 units at Local Government of West Sumbawa which taken by purposive sampling. This study shows that human resources quality, internal control of accounting, and financial control have positive and significant effect on reliability of financial reporting. This study also reports that human resources quality, utilization of information technology, accounting internal control, and financial control do not have effect on timeliness of financial reporting. On those findings, this study implies that the agency theory is consistent with the efforts of Local Government of West Sumbawa in term to present reliable financial information. Otherwise, this study implies that the compliance theory is not applicable to Local Government of West Sumbawa as human resources quality, utilization of information technology, accounting internal control, and financial control are not as determinants of timeliness on their financial reporting.

scholarly journals ANALISIS FAKTOR YANG MEMPENGARUHI KUALITAS LAPORAN KEUANGAN PEMERINTAHAN DAERAH (Studi Pada Badan Pengelolaan Keuangan dan Aset Daerah di Kabupaten Manokwari)

2019 ◽  
Vol 14 (1) ◽  
pp. 17-41
Author(s):  
Anik Wuriasih
Keyword(s):  
Information Technology ◽  
Local Government ◽  
Human Resources ◽  
Control Systems ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Information ◽  
Primary Data ◽  
Technology Utilization

This study aims to examine the influence of several factors (human resources quality, information technology utilization, internal control systems and organizational commitments) on the quality of the financial information of local government in Manokwari. Type of data uses in this research is primary data which have been obtained from questionnaires which are directly distributed to the respondents who are the head and the staffs of accounting division on financial and asset management services area (BPKAD) of Manokwari. The number of population and study sample was 46 people. Sampling using sampling methods saturated. This research data analysis method is multiple linear regression. Results of this study can be conclude that the human resources quality, internal control systems and organizational commitments have a significant positive effect on the quality of local government financial reporting information, while the use of information technology utilization does not have an effect on the quality of local government financial reporting information. Suggestion for the further research is to expand the independent variables that affect the quality of the financial information of local government.

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