Financial determinants of local government debt in New Zealand

2017 ◽  
Vol 29 (4) ◽  
pp. 512-533 ◽  
Author(s):  
Dimu Ehalaiye ◽  
Nives Botica-Redmayne ◽  
Fawzi Laswad
Keyword(s):  
New Zealand ◽  
Local Government ◽  
Interest Rates ◽  
Local Governments ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Content Type ◽  
Financial Variables ◽  
Low Interest Rates

Purpose The purpose of this paper is to investigate the financial determinants of local government debt in New Zealand. Design/methodology/approach To investigate the financial determinants of local government debt in New Zealand, the authors analyse the relationship between key financial variables with local government debt in New Zealand based on the theories of fiscal accountability and moral hazard using a panel data methodology, specifically the pooled ordinary least squares regression model. Findings The findings suggest that council income is the major financial determinant of local government borrowing in New Zealand rather than infrastructural spending and that during the global financial crises (GFC) borrowing levels of New Zealand local councils was not significantly impacted. However, the findings indicate that post the GFC, low interest rates have stimulated increased borrowing activity by New Zealand local governments to fund infrastructure. Originality/value This paper is the first to examine the determinants of local government debt in New Zealand. The findings of this study contribute to better understanding of local government/municipality debt in New Zealand and internationally by providing evidence on the financial determinants of debt of local governments and the indirect use of government policy to control local government borrowing. The findings of this study are anticipated to affect local government practices and national government policies in relation to local government finances.

“Measuring up”: a systematic literature review of performance measurement in Australia and New Zealand local government

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mary C. Johnsson ◽  
Matthew Pepper ◽  
Oriana Milani Price ◽  
Lauren P. Richardson
Keyword(s):  
Systematic Review ◽  
New Zealand ◽  
Local Government ◽  
Performance Measurement ◽  
Local Governments ◽  
Management Practices ◽  
New Public Management ◽  
Systematic Review Methodology ◽  
Content Type ◽  
Starting Point

Purpose Measurement practices have long been considered vital for informing the management of performance in organisations. Their application to local governments is a more recent, yet multi-decade phenomenon facilitated by New Public Management trends. This paper aims to review the landscape of publications that discuss performance measurement (PM) practices in Australian and New Zealand local government contexts and identify implications for future research. Design/methodology/approach A systematic review methodology was used to identify a shortlist of publications. Next, a rating-based researcher appraisal process was applied. Multiple iterations of search and appraisal were conducted to form the basis for inductive thematic analysis and synthesis. Findings Analysing 65 PM publications, two interrelated themes, namely, discourses of performance as efficiency, accountability or strategic growth and change were identified, which influence the adoption of local PM tools and frameworks. As demands for strategic growth and more complex service delivery increase, strategic and localised adaptation of PMs may be required to integrate learning and communicative competencies with technical and operational capabilities. Research limitations/implications The systematic review methodology has been applied to address some of the limitations of publication and reporting biases in literature. This research provides a starting point for future investigations and broadening of discourse in local government contexts. Originality/value This paper represents the first systematic review of 1995–2020 publications on performance management practices used by local governments in Australia and New Zealand.

Tightened controls will avert Mexican state debt rise

2015 ◽  
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Oil Price ◽  
National Debt ◽  
Content Type ◽  
Number Of Factors ◽  
Mexican State ◽  
Debt Issuance ◽  
Financial Transparency

Subject Mexican sub-national debt. Significance Mexico's states have long enjoyed considerable freedom to take on debt. However, legislation to tighten the issuing of debt by states and municipalities while increasing their financial transparency was submitted by President Enrique Pena Nieto on August 17. The move was triggered by a number of factors, including the plunge of the global oil price, political changeovers in local governments and excessive debt issuance by some authorities. Impacts Although unlikely, default by Nuevo Leon would shake markets, even affecting the federal government's creditworthiness. The new legislation will ease tensions between outgoing and incoming governments, with twelve states electing new governors in 2016. The level of local government debt will remain low, comparing favourably with other countries in the Americas.

scholarly journals Assessing the drivers of the regional digital divide and their impact on eGovernment services: evidence from a South American country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mónica Pazmiño-Sarango ◽  
Mijail Naranjo-Zolotov ◽  
Frederico Cruz-Jesus
Keyword(s):  
Digital Divide ◽  
Technology Use ◽  
Local Governments ◽  
Local Level ◽  
Ordinary Least Squares ◽  
Measurement Scale ◽  
Least Squares Regression ◽  
Content Type ◽  
Ict Adoption ◽  
Digital Development

PurposeThe paper explores the main drivers of the regional-level digital divide in Ecuadorian cities and the extent to which the information and communication technology (ICT) adoption by citizens influences local-level policymakers' decisions to develop eGovernment services.Design/methodology/approachThe paper used an exploratory approach. The authors empirically assessed the provision of eGovernment services in each of the 36 Ecuadorian local governments following the Local Online Service Index (LOSI) measurement scale proposed by the United Nations, and then evaluated the drivers of the eGovernment divide at a local level. Ordinary least squares regression analysis was used.FindingsThe findings indicate that the digital divide is driven by income and education disparities, and that eGovernment availability is driven by ICT use. It appears that proper attention to technology use by its citizens is not being given by local-level policymakers in Ecuador when they devise their eGovernment strategy.Research limitations/implicationsBecause the data were available at different levels of aggregation, there may be some inaccuracy of the indicators and lack of generalizability. Researchers are encouraged to test this hypotheses with data at lower levels of aggregation and from different latitudes to provide a comparative view between countries.Practical implicationsThe paper includes implications for policymakers and local authorities regarding how the limitations on eGovernment development may be mitigated.Originality/valueThis study fulfils the need to assess digital development and its impact on eGovernment services at a city level in a developing country.

Disaster risk reduction and empowering local government – a case comparison between Sri Lanka and New Zealand

2016 ◽  
Vol 7 (4) ◽  
pp. 318-329 ◽  
Author(s):  
Kristen MacAskill ◽  
Peter Guthrie
Keyword(s):  
New Zealand ◽  
Sri Lanka ◽  
Local Government ◽  
Built Environment ◽  
Local Governments ◽  
Disaster Risk ◽  
Role Of Government ◽  
Content Type ◽  
Case Comparison

Purpose This paper examines the role of government in New Zealand in facilitating the development of resilience in the built environment, with reference to the post-earthquake recovery of Christchurch. A cross-case comparison of the institutional structures and arrangements for disaster risk management (DRM) between Sri Lanka and New Zealand provides a useful basis to consider the broader implications of the findings from both countries. Particular consideration is given to the role of community participation in DRM decisions. Design/methodology/approach Malalgoda and Amaratunga (2015) recently published an article on empowering local governments to develop resilience in the built environment in Sri Lanka. This paper provides a response to their discussion in conjunction with a New Zealand case study. Findings Despite being one of the most advanced countries in the world with regards to DRM, New Zealand faces significant challenges in implementation, chief amongst which is that local governments have yet to truly prioritize DRM in urban development. While community consultation is embedded in the legislative framework, requirements for consultation were somewhat misjudged by the local government in Christchurch’s recovery. A lesson to be learnt from Christchurch’s experience is that even if the Sri Lankan authorities follow Malalgoda and Amaratunga’s recommendations for greater devolution of powers to local government, there will be tensions if community expectations over consultation are not met. Originality/value The cross-case analysis offers a helpful lens through which it is possible to examine DRM. It is useful for informing governments and other stakeholders, helping them to understand the challenges their institutions may face in facilitating DRM and building resilience.

Municipal debt will hinder financial reform in China

2015 ◽  
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Central Government ◽  
Government Debt ◽  
Bank Loans ◽  
Municipal Bonds ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Content Type ◽  
Loan Financing

Subject China's local government debt bailout. Significance China's local governments issued 734 billion renminbi (118 billion dollars) last month, accounting for some 35% of total bond issuance. A 1-trillion-renminbi local government debt-swap programme was introduced in March, under a pilot initiative announced in August 2014, and expanded last month by another 1 trillion renminbi. A slowdown in investment and an increasing use of bank loans by local governments to roll over debt may now have forced the central government to act boldly. Impacts Falling fiscal revenues, policy targets and the legacy of the 2008-09 fiscal stimulus will increase the supply of municipal bonds. State-owned commercial banks under the direction of the PBoC will mop up excess supply. Slower investment and lending puts pressure on central government to accelerate infrastructure investment and public-private partnerships. The PBoC will further adjust bank reserve ratios downwards if the slowdown in investment persists. Shifting away from short-term loan financing will shrink bank margins and slow down interest rate reform.

The relationship between ownership structure, capital structure and corporate governance practices

2014 ◽  
Vol 10 (4) ◽  
pp. 511-536 ◽  
Author(s):  
Krishna Reddy ◽  
Stuart Locke
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Capital Structure ◽  
Ownership Structure ◽  
Agency Costs ◽  
Ordinary Least Squares ◽  
Agency Cost ◽  
Least Squares Regression ◽  
Content Type ◽  
Governance Practices

Purpose – The purpose of this paper is to investigate the nature of corporate governance practised by co-operatives and mutual societies in New Zealand and whether there is any relationship between co-operatives’ ownership structure, capital structure and agency costs. The study also explores whether the capital structure and the ownership structure changed during the period 2005-2011. Design/methodology/approach – Panel data for the period 2005-2011 are analysed using ordinary least squares regression and the Tobit model regression. The authors have used operating expense to sales, asset utilisation and ROA as the dependent variables. Findings – The findings indicate that an increase in independent directors, board member experience and size (measured by total annual sales) reduces agency costs in co-operatives and mutuals in New Zealand. Also, borrowing from members rather than banks reduces agency cost and increases profitability in co-operatives and mutuals. Research limitations/implications – Caution should be exercised when generalising the findings of the study as it is restricted to New Zealand environment and the sample size used is relatively small. Practical implications – This study offers insights for policy makers internationally who are interested in adopting similar corporate governance practices in their own countries. Within New Zealand, the corporate governance debate associated with co-operatives and mutual societies will be better informed as a direct consequence of this research. Originality/value – This is the first study that extends the research undertaken by Ang et al. (2000) and Singh and Davidson (2003) to the cooperative and mutual business model in New Zealand.

The problem of the fiscal common-pool: is there an overlap effect on state and local debt?

2020 ◽  
Vol 32 (2) ◽  
pp. 137-157
Author(s):  
Yu Shi ◽  
Rebecca Hendrick
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
The State ◽  
Content Type ◽  
Common Pool ◽  
Total Debt ◽  
State And Local ◽  
Debt Levels

PurposeThe objective of the study is to determine if an over-borrowing bias emerges when the state fiscal base is shared by multiple general-purpose and special-purpose jurisdictions serving different groups of citizens.Design/methodology/approachThis study uses panel data from all 50 states in the US from 1997 to 2007 to estimate models of total debt levels of state governments and total debt levels of all local governments aggregated at the state level. For comparison, it also estimates total debt levels of state and local governments taken together for the same years.FindingsThis study finds that jurisdictional overlap will increase state government debt, local government debt, as well as combined state and local government debt.Originality/valueThe finding from the study suggests that the fiscal common-pool model provides a more accurate analysis and more appropriate understanding of the institutional composition at the state and local public sector, especially for the vertical dimension of the local public sector where there are more specialized and overlapping jurisdictions.

How friendship networks work in online P2P lending markets

2015 ◽  
Vol 6 (1) ◽  
pp. 42-67 ◽  
Author(s):  
Siming Li ◽  
Zhangxi Lin ◽  
Jiaxian Qiu ◽  
Roozmehr Safi ◽  
Zhongyi Xiao
Keyword(s):  
Interest Rates ◽  
Ordinary Least Squares ◽  
Friendship Networks ◽  
Least Squares Regression ◽  
Friendship Network ◽  
Data Set ◽  
Content Type ◽  
P2p Lending ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to study the effects of multidimensional friendship networks on economic outcomes in the domain of online people-to-people (P2P) lending markets. Design/methodology/approach – The empirical analysis is based on the data set of transactions and friendship networks from PPDai.com market, the most prominent P2P lending market in China. A friendship hierarchy is proposed in this paper to conceptualize friendship network types. Furthermore, methodologies of t-test, logistic regression and ordinary least squares regression are implemented to measure the impact of multidimensional friendship network variables on the probability of successful funding, as well as the interest rates on funded loans. Findings – The study demonstrates significant effects of structural, relational and cognitive friendship networks using PPDai.com data. The results indicate that structural friendship network measured in terms of the number of friendship ties is a significant factor of funding performance. Additionally, borrowers, who are involved in higher-quality friendship networks, are more likely to be funded and pay lower interest rates on funded loans. Also, the deeper the level of the relationship is in the friendship hierarchy, the more significant will be the effect of friendship on the final economic results. Furthermore, quality is more important than quantity in determining funding performance. Originality/value – This paper is the first to study the effects of multidimensional friendship networks on economic outcome variables in the domain of online P2P lending, thus broadening the theory of multidimensional social capital, which can deepen our understanding about how social networks work and have significant implications practically and theoretically.

Policy Direction for Philippine Level 3 Local Government Hospitals based on the Predictors of Quality Patient Care

2019 ◽  
Vol 4 (3) ◽  
pp. 53-63
Author(s):  
Lucille A. Abraham ◽  
Mary Caroline N. Castaño
Keyword(s):  
Local Government ◽  
Human Resources ◽  
Patient Care ◽  
Local Governments ◽  
Ordinary Least Squares ◽  
Quality Patient Care ◽  
Industry Type ◽  
Government Hospitals ◽  
Level 3 ◽  
Policy Direction

ABSTRACT Objective – The study aims to formulate a policy direction (through a model) among Philippine level 3 local government hospitals based on the predictors of Quality Patient Care (QPC). The predictors are cost-effectiveness, utilization of materials, services by human resources, accessibility, leadership and management and ethical standards as independent variables in relation to the dependent variable which is QPC. Methodology/Technique – Survey questionnaires and interviews were conducted to patients, hospital directors, doctors, nurses, administrative and ancillary officers. The study used descriptive (mean and standard deviation) and inferential (ordinary least squares and multiple regression analysis) statistics. Findings – The study revealed that the utilization of materials has the most influence/effect on QPC wherein an increase in 1% of materials brought about an increase of 0.55 % in QPC. Likewise, accessibility brought about an increase in QPC by 0.42 %; and services rendered by human resources brought about an increase in QPC by 0.05 %. Novelty – This is the first study of Philippine Level 3 local government hospitals which aims to formulate a policy direction (through a model) based on the predictors of QPC. This can be used by the national and local governments in devising policies to improve healthcare, particularly in the hospital industry. Type of Paper: Empirical Keywords: local government hospitals; Philippines; policy direction; quality patient care

The impact of executives’ perceptions of environmental threats and organizational slack on innovation strategies

2016 ◽  
Vol 7 (2) ◽  
pp. 216-230 ◽  
Author(s):  
Chengyuan Wang ◽  
Biao Luo ◽  
Yong Liu ◽  
Zhengyun Wei
Keyword(s):  
Cognitive Theory ◽  
Environmental Changes ◽  
Ordinary Least Squares ◽  
Organizational Slack ◽  
Least Squares Regression ◽  
Content Type ◽  
Environmental Threats ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose The paper aims to study the relationship between executives’ perceptions of environmental threats and innovation strategies and investigate the moderating effect of contextual factor (i.e. organizational slack) on such relations. It proposes a dualistic relationship between executives’ perceptions of environmental threats and innovation strategies, in which different perceptions of environmental threats will lead to corresponding innovation strategies, and dyadic organizational slack can promote such processes. Design/methodology/approach The paper is based on a survey with 163 valid questionnaires, which were all completed by executives. Hierarchical ordinary least-squares regression analysis is used to test the hypotheses proposed in this paper. Findings The paper provides empirical insights about that executives tend to choose exploratory innovation when they perceive environmental changes as likely loss threats, yet adopt exploitative innovation when perceiving control-reducing threats. Furthermore, unabsorbed slack (e.g. financial redundancy) positively moderates both relationships, while absorbed slack (e.g. operational redundancy) merely positively influences the relationship between the perception of control-reducing threats and exploitative innovation. Originality/value The paper bridges the gap between organizational innovation and cognitive theory by proposing a dualistic relationship between executives’ perceptions of environmental threats and innovation strategies. The paper further enriches innovation studies by jointly considering both subjective and objective influence factors of innovation and argues that organizational slack can moderate such dualistic relationship.

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