Journal of Public Budgeting, Accounting & Financial Management

Noe, Kelly; Forgione, Dana A.; Smith, Pamela C.; Liu, Hanni

2017 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-29-01-2017-B001

We examine earnings management in non-publicly listed companies, with a focus on for-profit (FP) hospice organizations, and extend the accounting earnings management literature to the hospice industry. FP hospice organizations file Medicare cost reports that include complete financial statements not otherwise publicly available. Managers of FP hospice organizations have incentives to manage earnings to increase performancebased bonuses, meet or beat bond covenant requirements, or avoid public scrutiny. We find total accruals are significantly positively associated with profitability, debt, and size factors. However, discretionary accruals are significantly negatively associated with debt and size, but not profitability. Thus, monitoring and political cost factors appear to effectively mitigate earnings management in this industry sector.

Topinka, John

2017 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-29-01-2017-B002

The purpose of this research is to examine fiscal health of a specific local enterprise operation: seaports. Seaports provide unique local services while spending and borrowing billions of dollars. Decision makers should be aware of the fiscal health of these enterprises in part to assess the potential risks to the fiscal health of the government at large or public authority. Using eight stock and flow fiscal indicators appropriate for enterprise activities, this research examines eight seaports to compare fiscal health by geographic location and governing structure as well as the connection between long-term and short-term fiscal measures. Descriptive measures suggest that western and public authority ports exhibit better fiscal health than southern and departmental ports with some evidence showing a modest link between long-term and short-term fiscal health.

Menifield, Charles E.; Stewart, LaShonda M.; Clark, Cal; Stodden, William P.

2017 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-29-01-2017-B003

Substantial research has been conducted examining policy diffusion among both the American states and the nations of the developed world and to a somewhat lesser extent, developing worlds. Little research, especially at the nation-state level, has focused upon budget systems, however. We use case studies of 18 diverse countries (Menifield, 2011) to conceptualize national budget systems and, based upon this conceptualization, to identify clusters of nations with similar systems. We found evidence suggesting that policy diffusion may be occurring in the realm of national budget systems. Our analysis shows that budgetary institutions and behaviors can and do form clusters that are useful in analyzing national budget systems. Our ability to describe clusters of nations with similar budget systems could prove to be a helpful tool for analyzing international policy diffusion.

Dineen, Jennifer; Robbins, Mark D.; Simonsen, Bill

2017 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-29-01-2017-B004

Fiscal conditions and budget constraints in the United States have placed solutions to budget deficit problems at the center of the public policy debate. Preferences for deficit reduction strategies are likely to be heavily associated with particular ideologies and other demographic and economic variables. Therefore, since this study is a true randomized experiment, it provides strong evidence about the influence of question wording on deficit reduction preferences, and therefore the likelihood it is susceptible to manipulation. We find clear evidence that using the word ‘tax’ significantly and substantially influences respondents’ choices. This result is robust over two experimental trials about a year apart and whether or not control variables are included.

Jatmiko Wahyu Prabowo, Tri; Leung, Philomena; Guthrie, James

2017 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-29-01-2017-B005

This paper examines whether public sector reforms in a developing country is consistent with the principles of new public management (NPM). It examines whether Indonesian public sector reforms from the late 1990s to 2015, specifically the adoption of accrual accounting, are motivated by NPM philosophy. Reviewing and analysing Government regulations and reports, the study finds that the reforms are an attempt to implement NPM, specifically in relation to five financial management aspects (i.e. market-oriented, budgeting, performance management, financial reporting and auditing systems). However, the reforms are inconsistent with the NPM philosophy of efficiency and effectiveness in public service provisions. By requiring the use of the existing system, the reforms actually created inefficiency. This research is novel in investigating the gap between 'ideal concepts' and examining practices in an emerging country context.