Understanding the impact of mandatory accrual accounting on management practices: interpretation of Japanese local governments’ behavior

2021 ◽  
pp. 002085232198895
Author(s):  
Makoto Kuroki ◽  
Keiko Ishikawa ◽  
Kiyoshi Yamamoto
Keyword(s):  
Internal Control ◽  
Local Governments ◽  
Public Management ◽  
Management Practices ◽  
New Public Management ◽  
Central Government ◽  
Institutional Pressures ◽  
Accrual Accounting ◽  
Logistic Analysis ◽  
The Impact

Accompanying the spread of “new public management” since the 1980s, accrual accounting and results-based management has become a global standard. However, whether accrual accounting results in successful outcomes and which drivers lead to the intended impacts of the reform have been contested. Given the mixed arguments in the literature, we set out two research questions: (1) “Have public sector organizations realized any positive impacts on management practices by adopting mandatory accrual accounting?”; and (2) “What are the primary drivers of such impacts?” To answer these questions, we examine the impact on management practices by analyzing a survey to ascertain how financial department officers in Japanese local governments perceive the benefits of adopting mandatory accrual accounting on management practices. The results indicate that they have so far not recognized the intended benefits, though they had expected higher benefits in internal control. Then, we use technical-rational, socio-political, and institutional isomorphic perspectives in a comprehensive approach to understand the impacts on management practices. The logistic analysis shows that financial managers in local governments that do not have a majority party in the assembly, but consist of several parties in power, as well as in those with greater financial dependence on the central government, perceive higher benefits. Further, we find that financial managers that imitate other local governments as a form of mimetic pressure perceive fewer benefits. The results show that some technical-rational tools, socio-political conditions, and institutional pressures change the perceived benefits for public managers of adopting mandatory accrual accounting. Points for practitioners We find that some technical-rational, socio-political, and institutional factors explain the intended internal benefits of the mandatory adoption of accrual accounting. In practice, financial managers in local government feel the merits of accrual accounting in less autonomy in not only politics, but also finance, and few mimetic conditions. It might be understood that difficult situations would drive practitioners to use mandatory information.

Administrative reform in China's central government — how much `learning from the West'?

2008 ◽  
Vol 74 (3) ◽  
pp. 351-371 ◽  
Author(s):  
Tom Christensen ◽  
Dong Lisheng ◽  
Martin Painter
Keyword(s):  
Public Sector ◽  
Public Management ◽  
New Public Management ◽  
Central Government ◽  
The West ◽  
Public Sector Innovation ◽  
Chinese Characteristics ◽  
New Public ◽  
Key Aspects ◽  
The Impact

The prevailing interpretation in the scholarly literature is that public sector reform in China during the period of marketization has been driven primarily by internal, contextual factors rather than being under the sway of particular global reform models or theories such as New Public Management. The aim of this article is to move beyond arguing from inference that `Chinese characteristics' continue to be dominant and to inquire into the manner and extent of external influences on central government reform actors. We assume a `multi-causal' model in which both internal and external factors are present. From a survey of the literature on the reforms, we conclude that, while there are some `unique' features, most of the themes (and even the results) of modern Chinese reforms are not unique and have parallels in Western countries. Moreover, aside from the similarities in the content and substance of administrative reforms, the patterns and styles of reform in China and in the West in the past 20 years show marked similarities and parallels. Thus, external reform ideas and influences are being diffused through reform processes. Further empirical and theoretical analysis is required to establish the more specific nature of scanning and dissemination, or other forms of diffusion; the kind of learning that is taking place; and the impact that any imported models or templates actually have on reform proposals and outcomes in particular reform episodes. Points for practitioners • Whereas many scholars tend to believe the lip service the Chinese leaders pay to the `uniqueness' of China's public sector reforms and their `Chinese characteristics', their leaders have been very eager to `learn from the West'. • Emulation and learning at a global level are key aspects of contemporary public sector innovation and reform, even between jurisdictions that are seemingly very different from each other. • The development of sophisticated mechanisms for scanning and selective learning are key requirements for a rapidly developing public sector such as China's.

scholarly journals New Public Management, Public Service Bargains and the challenges of interdepartmental coordination: a comparative analysis of top civil servants in state administration

2013 ◽  
Vol 79 (1) ◽  
pp. 29-48 ◽  
Author(s):  
Morten Balle Hansen ◽  
Trui Steen ◽  
Marsha de Jong
Keyword(s):  
Comparative Analysis ◽  
Public Service ◽  
Public Management ◽  
New Public Management ◽  
Central Government ◽  
Civil Servants ◽  
Close Link ◽  
New Public ◽  
State Administration ◽  
The Impact

In this article we are interested in how the coordinating role of top civil servants is related to the argument that country-level differences in the adoption of New Public Management significantly alter the Public Service Bargains of top civil servants and consequently their capacity to accomplish interdepartmental coordination. A managerial PSB limits top civil servants’ role in interdepartmental coordination, as their focus will be on achieving goals set for their specific departments, rather than for the central government as a collective. We test our argument with empirical insights from a comparative analysis of five countries: Belgium, Canada, Denmark, the Netherlands and the United Kingdom. We find that our argument is only partly valid and discuss the theoretical and empirical implications of the analysis. Points for practitioners Alongside the introduction of New Public Management, the relationships between ministers and their top civil servants in state administration have evolved. At the same time, societal issues are getting more complex and demand a holistic, cross-sector approach. The concept of a managerial Public Service Bargain is used to analyze changes in top civil servants’ role and the impact of reforms on the capacity of top civil servants to accomplish interdepartmental coordination. Practitioners can learn more about the close link between challenges for interdepartmental coordination and changes in the role and functioning of top civil servants.

Earnings management in local governments: the role of political factors

2019 ◽  
Vol 20 (3) ◽  
pp. 331-348 ◽  
Author(s):  
Sandra Cohen ◽  
Marco Bisogno ◽  
Ioanna Malkogianni
Keyword(s):  
Public Sector ◽  
Earnings Management ◽  
Local Governments ◽  
Management Practices ◽  
Choice Theory ◽  
Central Government ◽  
Accrual Accounting ◽  
Political Factors ◽  
Content Type ◽  
Management Behaviour

Purpose The purpose of this paper is to examine earnings management practices in local governments (LGs). The implementation of accrual accounting in LGs opens the way for empirical research on the topic, as reporting high surpluses or high deficits can be negatively interpreted by the central government, monitoring authorities, citizens and political opponents. According to public choice theory, the conflicting interests between politicians, who pursue re-election, and voters, who observe politicians’ actions to assess their alignment with social welfare, create fertile ground for earnings management practices. Design/methodology/approach The study calculates discretionary accruals, by using the Jones (1991) model, and relates them to several political variables. It employs a large sample of Greek and Italian LGs. The Greek database covers the period from 2002 to 2015 with about 4,300 observations, and the Italian database includes the period from 2008 to 2015 with about 1,130 observations. Findings The findings from the analysis give evidence that LGs engage in earnings management. The principal factor is the electoral cycle, as earnings management seems to be greater when the mayor is re-elected than when the mayor is elected for the first time. Furthermore, the period before elections create conditions that cultivate earnings management attitudes. Research limitations/implications Previous studies have principally investigated earnings management in the private sector. Considering that many public-sector entities have implemented accrual accounting systems, this study intends to examine earnings management behaviour at the LG level, providing interesting findings for researchers and policy makers. Practical implications A better understanding of the political factors and the financial conditions, which act as obstacles or facilitators, should work hand in hand with the accounting reforms. The usefulness of financial statements for decision making and control presupposes that they are of high quality, an attribute that can be impaired by earnings management. Originality/value This study investigates the influence of political factors on earnings management behaviour in public-sector contexts where self-interest and accountability pressures coexist.

“New Public Management” in China at the Local Level: Competition-Driven Local Public Service Reform in Tianjin

2012 ◽  
Vol 10 (2) ◽  
pp. 153-170 ◽  
Author(s):  
Xufeng Zhu ◽  
Qiyuan Jiao
Keyword(s):  
Public Service ◽  
Local Governments ◽  
Public Management ◽  
Management Practices ◽  
New Public Management ◽  
Local Level ◽  
Service Outsourcing ◽  
New Public ◽  
Tianjin City ◽  
Administrative Licensing

New public management (NPM) paradigm plays an increasingly important role in contemporary public management practices throughout the democratic world. This article argues that the driving force behind NPM reform in China at the local level is the competitive pressure to improve administrative performance. In China, where there is no electoral democratic regime, local governments face pressure in competition with counterparts over economic performance and consequent promotion opportunities for their leadership. The introduction of NPM can make local governments more effective and efficient in providing public services, which can result in local governments attracting more investments and enhancing competitiveness. The administrative licensing reform with public service outsourcing in Heping District, Tianjin City, China, is an example of NPM reform driven by competition among local governments. Keywords: new public management • local governments • administrative licensing • public service outsourcing • China

scholarly journals STRATEGI PENCAPAIAN OPINI WTPPEMERINTAH KABUPATEN BONDOWOSO DALAM PENERAPAN STANDAR AKUNTANSI PEMERINTAHAN BERBASIS AKRUAL

BISMA ◽  
2018 ◽  
Vol 11 (3) ◽  
pp. 350
Author(s):  
Heny Setyawati
Keyword(s):  
Local Government ◽  
Internal Control ◽  
Financial Management ◽  
Public Management ◽  
New Public Management ◽  
Central Government ◽  
Early Stage ◽  
Accounting Standards ◽  
Financial Statements ◽  
The Government

Abstract: New Public Management has reformed the financial management of the public sector by adopting approaches from the private sector in order to achieve organizational efficiency and effectiveness (including local and central government finances) and it was the reason behind the implementation of Accrual-based Government Accounting Standards (SAP). The Governmentof Bondowoso also implements accrual-based SAP policy. This study used a qualitative approach by using Strenghts Weaknessess Opportunities Threats (SWOT) analysis in the early stage to describe the strategy and then completed by in depth interview. The informants were 8 (eight) key persons in the Government of Bondowoso with significant roles in achieving the unqualified opinion in implementing the accrual-based SAP. Results show that commitment from the leaders of local government and institutions, financial statements presentation that in line with the SAP, sufficient internal control system, and the follow-up on the State Audit Agency’s recommendations on the local government financial statements are the major strengths in achieving the unqualified opinion of the accrual-based SAP. The opportunities in Strength-Opportunity (SO) strategy are the issuance of various laws and regulations and technical guidance of accrual-based accounting standards by the central government. Keywords: Unqualified Opinion, Accrual Based SAP, SWOT, Strategy.

Asymmetrical Attribution of Performance in China

Asian Survey ◽  
2020 ◽  
Vol 60 (5) ◽  
pp. 978-1003
Author(s):  
Jacqueline Chen Chen ◽  
Jun Xiang
Keyword(s):  
Economic Development ◽  
Local Governments ◽  
Central Government ◽  
Cultural Theory ◽  
Political Trust ◽  
Mediation Model ◽  
Multilevel Mediation ◽  
Dual Pathway ◽  
Underlying Mechanisms ◽  
The Impact

Existing studies of the impact of economic development on political trust in China have two major gaps: they fail to explain how economic development contributes to the hierarchical trust pattern, and they do not pay enough attention to the underlying mechanisms. In light of cultural theory and political control theory, we propose adapting performance theory into a theory of “asymmetrical attribution of performance” to better illuminate the case of China. This adapted theory leads to dual pathway theses: expectation fulfillment and local blaming. Using a multilevel mediation model, we show that expectation fulfillment mainly upholds trust in the central government, whereas local blaming undermines trust in local governments. We also uncover a rural–urban distinction in the dual pathway, revealing that both theses are more salient among rural Chinese.

Collaboration Consequences: New Public Management and Police-Academic Partnerships

2021 ◽  
pp. 193672442098437
Author(s):  
Carrie B. Sanders ◽  
Debra Langan
Keyword(s):  
Policy Development ◽  
Public Management ◽  
Management Practices ◽  
New Public Management ◽  
Evidence Based ◽  
Organizational Contexts ◽  
Police Services ◽  
New Public ◽  
Academic Partnerships ◽  
Institutional Strategies

With increasing pressure on public organizations to demonstrate accountability, police services and public universities are being tasked with demonstrating how their institutional strategies are effective and economically efficient. In this paper, we draw on our own research collaborations with two different Canadian police services (Bluewater and Greenfield) on a similar community crime prevention strategy, Situation Tables. We illustrate how new public management practices are embedded in the political, economic, and organizational contexts that have inspired police-academic partnerships and invigorated the evidence-based policing movement in Canada. Our analysis illustrates how our partnerships were influenced by the performance strand of new public management that prioritizes the quantification of measures of outputs over qualitative evaluations of impact. We argue that these practices, if not interrogated, can jeopardize the integrity of evidence-based practice and policy development. Academic freedom must be retained when partnering with the police to ensure an examination of the implications of police practices.

scholarly journals The Neoliberal University in Ireland: Institutional Bullying by Another Name?

Societies ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 52
Author(s):  
Margaret Hodgins ◽  
Patricia Mannix McNamara
Keyword(s):  
Higher Education ◽  
Public Management ◽  
New Public Management ◽  
Academic Staff ◽  
Well Being ◽  
The United States ◽  
Decent Work ◽  
New Public ◽  
The Impact ◽  
Health And Well Being

New managerialism and the pervasive neoliberalisation of universities is by now a well-established phenomenon. Commentaries explore the political and economic drivers and effects of neoliberal ideology, and critique the impact on higher education and academic work. The impact on the health and well-being of academic staff has had less attention, and it is to that we turn in this paper. Much academic interest in neoliberalism stems from the UK, Australia and the United States. We draw particularly on studies of public Irish universities, where neoliberalism, now well entrenched, but something of a late-comer to the new public management party, is making its presence felt. This conceptual paper explores the concept of neoliberalism in higher education, arguing that the policies and practices of new public management as exercised in universities are a form of bullying; what we term institutional bullying. The authors are researchers of workplace culture, workplace bullying and incivility. Irish universities are increasingly challenged in delivering the International Labour Organisation (ILO) principles of decent work, i.e., dignity, equity, fair income and safe working conditions. They have become exposed in terms of gender imbalance in senior positions, precariat workforce, excessive workload and diminishing levels of control. Irish universities are suffering in terms of both the health and well-being of staff and organisational vibrancy. The authors conclude by cautioning against potential neoliberal intensification as universities grapple with the economic fallout from the COVID-19 pandemic. This paper reviews neoliberalism in higher education and concludes with insight as to how the current pandemic could act as a necessary catalyst to stem the tide and ‘call out’ bullying at the institutional level.

scholarly journals New public management and budgeting practices in Tanzanian Central Government

2016 ◽  
Vol 6 (4) ◽  
pp. 340-371 ◽  
Author(s):  
Andrew Goddard ◽  
Tausi Ally Mkasiwa
Keyword(s):  
Public Management ◽  
New Public Management ◽  
Central Government ◽  
Successful Implementation ◽  
Donor Funding ◽  
Policy Makers ◽  
Content Type ◽  
Inductive Research ◽  
New Public ◽  
Research Findings

Purpose The purpose of this paper is to investigate the budgeting practices in the Tanzanian Central Government. New budgeting reforms were introduced following exhortations from the bodies such as the UN, the World Bank and the IMF and reflect the new public management (NPM). Design/methodology/approach A grounded theory methodology was used. This methodology is inductive, allowing phenomena to emerge from the participants rather than from prior theory. This ensures both relevance and depth of understanding. Findings The principal research findings from the data concern the central phenomenon of “struggling for conformance”. Tanzanian Central Government adopted innovations in order to ensure donor funding by demonstrating its ability to implement imposed budgetary changes. Organizational actors were committed to these reforms through necessity and struggled to implement them, rather than more overtly resisting them. Research limitations/implications The research is subject to the usual limitations of case study, inductive research. Practical implications This research has several implications for policy-makers of NPM and budgetary reforms. These include the recognition that the establishment of the rules and regulations alone is not adequate for the successful implementation of budgetary and NPM reforms and should involve a comprehensive view of the nature of the internal and external environment. Originality/value There are few empirical papers of NPM accounting practices being implemented in the public sector of developing countries and none at all based in Tanzania. The paper identifies the existence of struggling to conform to reforms rather than resistance identified in prior research.

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