The Cost of Future Policy: Intertemporal Public Sector Balance Sheets in the G7

Purpose This paper aims to examine the interplay between risk, capital and efficiency of Indian banks and study how their relationship differs across different ownership types. Design/methodology/approach Panel regression techniques are used to analyze a large data set of all Indian scheduled commercial banks operating during the period 2008-2016. Findings The results show that lower efficiency is associated with higher credit risk in the case of public sector and old private sector banks (”bad management hypothesis”). However, higher efficiency leads to higher credit risk in the case of foreign banks (“cost skimping hypothesis”). The authors further find that the more efficient institutions among public sector hold more capital. Finally, they find that the better-capitalized banks among those in the public sector have lower risks on their balance sheets (“moral hazard hypothesis”). Originality/value There is a paucity of papers on the interplay between risk, capital and efficiency of banks in emerging economies. This paper is the first to study the inter-relationship between risk, capital and efficiency of Indian banks across ownership groups using a number of different measures of risk.

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The embeddedness of digital infrastructures for data collection by the Courts of Accounts

Revista Contabilidade & Finanças ◽

10.1590/1808-057x202111600 ◽

2021 ◽

Author(s):

André Carlos Busanelli de Aquino ◽

André Feliciano Lino ◽

Ricardo Rocha de Azevedo

Keyword(s):

Public Sector ◽

Data Collection ◽

Financial Management ◽

Public Organizations ◽

Digital Transformation ◽

Digital Tools ◽

Longitudinal Case Study ◽

Accounting Data ◽

The Cost ◽

Government Auditing

ABSTRACT This study aimed to identify the trajectories for data collection automation in various Courts of Accounts (Tribunais de Contas), the standard features of the systems that have emerged, and the impacts on fiscal and accounting oversight in Brazil. Data collection automation is part of the digital transformation in the field of auditing; however, the literature on public sector auditing in Brazil, on digital transformation, or digital infrastructure, does not analyze how this transformation occurs and how the infrastructures are stabilized and shape the field of auditing. Data collection automation has unexpected implications for the content of public sector audits and the financial management of the public sector auditees. Identifying the trajectories for digital tools of data collection automation enables a discussion on whether currently adopted solutions vary and the effects on the standardization of government audits. The automation of data collection by the Court of Accounts, particularly its scope and frequency, affects how the audited public organizations prioritize the adoption and maintenance of accounting, budgeting, and financial planning policies and processes. The digital infrastructures that emerge from these digital tools shape the entire field of auditing, they become embedded, and they increase the cost of future changes, perpetuating the heterogeneity in the auditing and financial management of governments in the Brazilian federation. The article presents a longitudinal case study (1994 to 2020), with narratives built based on questionnaires and interviews with auditors from 26 Courts of Accounts. The automation of budgetary and accounting data collection by Courts of Accounts has changed the logic of the field of government auditing in Brazil. The digital infrastructures that emerge by connecting Courts and the audited public organizations under their jurisdictions have embedded concepts, definitions, and implicit expectations in a remote auditing logic.

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Whistleblowing: Impediments to effective implementation within the South African public sector

Corporate Ownership and Control ◽

10.22495/cocv8i3c1p3 ◽

2011 ◽

Vol 8 (3) ◽

pp. 196-208 ◽

Cited By ~ 1

Author(s):

Nirmala Dorasamy ◽

Soma Pillay

Keyword(s):

Public Sector ◽

South African ◽

Public Service ◽

Justice System ◽

Quantitative Research ◽

Code Of Conduct ◽

The South ◽

The Public ◽

Effective Implementation ◽

The Cost

This purpose of this article is to explore impediments to effective whistleblowing as a strategy for promoting anti-corruption practices within the South African public sector. Corruption, which violates the public service code of conduct; deters foreign investment, increases the cost of public service delivery, undermines the fight against poverty and unnecessarily burdens the criminal justice system. The article addresses the question on whether legislation on whistleblowing is adequate to encourage whistleblowing in the public sector. A review of literature determines that the effective implementation of whistleblowing legislation is largely dependent on addressing the challenges identified in the article. The quantitative research method was employed in the study to ascertain the views of employees in the public sector on whistleblowing. Empirical findings confirm the hypothesis that the protection of whistleblowers through legislation is inadequate to encourage whistleblowing. The article provides a conceptual framework for the effective achievement of the intended outcomes of whistleblowing in the public sector.

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Cost, revenue and profit efficiency analysis of Indian scheduled commercial banks

International Journal of Law and Management ◽

10.1108/ijlma-01-2016-0008 ◽

2017 ◽

Vol 59 (3) ◽

pp. 442-462 ◽

Cited By ~ 7

Author(s):

Megha Mahendru ◽

Aparna Bhatia

Keyword(s):

Public Sector ◽

Commercial Banks ◽

Empirical Work ◽

Specific Reference ◽

Profit Efficiency ◽

Content Type ◽

Output Synchronization ◽

Efficiency Performance ◽

Private And Public ◽

The Cost

Purpose This paper aims to analyze the cost, revenue and profit efficiency performance of Indian scheduled commercial banks. The study also determines differences if any related to efficiency among banks on the basis of ownership pattern. Design/methodology/approach Cost, revenue and profit efficiency of banks is calculated by using the non-parametric approach, namely, data envelopment analysis. Further, the differences in the efficiency scores are examined by applying analysis of variance. Findings Indian scheduled commercial banks have not been able to maintain their input-output synchronization in terms of cost, revenue and profits in the year 2012-2013. Foreign sector banks have higher cost and profit efficiency as compared to their counterparts in private and public sector, whereas public sector banks are found to have been more revenue efficient. Originality/value With specific reference to India, less empirical work has been carried out with respect to cost, revenue and profit efficiency. None of the studies have evaluated the sector-wise performance of banks in terms of all three efficiency parameters.

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Turning Around Distressed Project Finance Assets in India: What More Needs to Be Done?

The Journal of Structured Finance ◽

10.3905/jsf.2018.1.068 ◽

2018 ◽

Keyword(s):

Cash Flows ◽

Project Finance ◽

Cost Of Debt ◽

Risk Allocation ◽

Debt Overhang ◽

Balance Sheets ◽

Infrastructure Project ◽

Bankruptcy Code ◽

The Cost ◽

Future Cash Flows

With the Insolvency and Bankruptcy Code firmly in place, India’s distressed project finance assets are turning out to be attractive to institutional investors. Project finance assets need asset-and deal-specific financing solutions in order to achieve successful turnarounds. The turnaround solution must ensure optimum risk allocation and mitigation leading to the buildup of future cash flows. This will, in turn, lead to deleveraging of stressed balance sheets. The authors present a conceptual model and argue that even now the political and regulatory risks for infrastructure project loans in India have not been completely mitigated. This has resulted in a situation of a debt overhang, wherein even economically viable projects may not attract fresh funding. To address this, the article suggests the possible use of priority funding structures, where existing lenders cede charge of the assets in favor of a new lender as a way to reduce the cost of debt and unlock shareholder value. This solution will also ensure that the restructuring package is properly priced (from the project finance lender’s perspective), resulting in the efficiency and viability of the restructured asset.

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What Drives a Successful Technology Implementation?

E-Government Services Design, Adoption, and Evaluation ◽

10.4018/978-1-4666-2458-0.ch020 ◽

2013 ◽

pp. 340-357

Author(s):

Kawal Kapoor ◽

Yogesh K. Dwivedi ◽

Michael D. Williams ◽

Mohini Singh ◽

Mark J. Hughes

Keyword(s):

Public Sector ◽

Radio Frequency Identification ◽

Technology Implementation ◽

Capital Investment ◽

Stock Management ◽

Implementation Team ◽

Public Sector Organizations ◽

Self Service ◽

The Individual ◽

The Cost

Radio Frequency Identification (RFID) is revolutionizing item identification and tracking. The technology demonstrates complexities in terms of (a) huge initial capital investment, (b) validating the need for RFID followed by its implementation decisions, (c) risks associated with consumer acceptance and consequences of incorrect implementation, and (d) capability to support enhancements and upgrades in cordial agreement with the individual implementer organizations. This paper explores the extent of RFID implementation at the Swansea University Library, examining the Social, Technological, Economic, and Managerial (STEM) aspects directly associated with implementation. A focused interview approach was resorted to, for data collection purposes. The core implementation team for RFID at Swansea University was interviewed to gain insights into the study’s areas of interest. It was found that self service is the most sought after benefit. It simplifies stock management and enhances security at the libraries. Although the cost of the system remains a concern, varying on the basis of the scale of implementation, vandalism also continues to exist but to a reduced degree. University libraries are public sector organizations, consequently leading these findings to have an insinuation for RFID implementations in other public sector organizations as well.

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Public Sector E-Commerce

Electronic Commerce ◽

10.4018/978-1-59904-943-4.ch004 ◽

2011 ◽

pp. 31-37

Author(s):

Christopher G. Reddick

Keyword(s):

Public Sector ◽

Electronic Commerce ◽

Transaction Costs ◽

The Public ◽

Doing Business ◽

The Cost

Electronic commerce or e-commerce has the potential to streamline existing functions and services in the public sector by reducing transaction costs or the cost of doing business. This article provides an overview of some of the critical e-commerce issues for the public sector focusing on its impact on reducing transaction costs.

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Thirty years after water privatization—is the English model the envy of the world?

Oxford Review of Economic Policy ◽

10.1093/oxrep/grz031 ◽

2020 ◽

Vol 36 (1) ◽

pp. 69-85 ◽

Cited By ~ 2

Author(s):

Dieter Helm

Keyword(s):

Cost Of Capital ◽

Superior Performance ◽

Water Regulation ◽

Water Privatization ◽

Balance Sheets ◽

The World ◽

Private Incentives ◽

Regulation Model ◽

The Cost

Abstract The paper considers whether water privatization 30 years ago has delivered the promised superior performance to nationalization, which remains the dominant model in Europe. The paper sets out the arguments at privatization, in particular in relation to efficiency, the managerial incentives, the role of private-sector balance sheets in facilitating investment, and the impacts on the cost of capital. Alternative explanations of relative performance, notably the regulation model adopted, are highlighted, and the paper concludes by outlining an alternative model of water regulation which better marries up public responsibilities and private incentives.

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The Cost of Contract Renegotiation: Evidence from the Local Public Sector

The American Economic Review ◽

10.1257/aer.103.6.2352 ◽

2013 ◽

Vol 103 (6) ◽

pp. 2352-2383 ◽

Cited By ~ 30

Author(s):

Philippe Gagnepain ◽

Marc Ivaldi ◽

David Martimort

Keyword(s):

Public Sector ◽

Efficient Solution ◽

Urban Transport ◽

Welfare Gains ◽

Agent Model ◽

Transport Services ◽

Fixed Price ◽

Open Issue ◽

Principal Agent Model ◽

The Cost

Contract theory claims that renegotiation prevents attainment of the efficient solution that could be obtained under full commitment. Assessing the cost of renegotiation remains an open issue from an empirical viewpoint. We fit a structural principal-agent model with renegotiation on a set of contracts for urban transport services. The model captures two important features of the industry as only two types of contracts are used (fixed price and cost-plus) and subsidies are greater following a cost-plus contract than following a fixed-price one. We conclude that the welfare gains from improving commitment would be significant but would accrue mostly to operators. (JEL D82, D86, L51, L92, R42, R48)

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A two-stage DEA approach to analyse the efficiency of the hospitality sector

Tourism Economics ◽

10.1177/1354816618758733 ◽

2018 ◽

Vol 24 (3) ◽

pp. 352-365 ◽

Cited By ~ 4

Author(s):

Manuela Pulina ◽

Valentina Santoni

Keyword(s):

Data Envelopment ◽

Balance Sheets ◽

Sales Revenue ◽

Standard Data ◽

Labour Costs ◽

Short Run ◽

Hospitality Sector ◽

The Cost ◽

Strong Seasonality

This article explores the performance of the hospitality sector in Sardinia (Italy) using empirical data collected from company balance sheets (from 2004 to 2013). A standard data envelopment analysis (DEA) is run using sales revenue as an output and the monetary value of all tangible and intangible assets as well as labour costs as inputs. Following the Simar–Wilson approach, a post-DEA is also carried out to investigate the factors that influence hotels’ economic efficiency. The empirical results show that business default and the cost of money negatively influence hotels’ performance and that firms located in highly specialized areas with a strong seasonality are relatively inefficient. Furthermore, the short-run debt index and the long-term debt index positively impact efficiency.

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