To manage or reserve accruals? Evidence from a balanced-budget requirement reform

References

• Anagnostopoulou, S. C., & Stavropoulou, C. (2021). Earnings management in public healthcare organizations: The case of the English NHS hospitals. Public Money & Management, https://doi.org/10.1080/09540962.2020.1866854
   Web of Science ®Google Scholar
• Arcas, M. J., & Martí, C. (2016). Financial performance adjustment in English local governments. Australian Accounting Review, 26(2), 141–152. https://doi.org/10.1111/auar.12094
   Web of Science ®Google Scholar
• Austin, P. C. (2011). Optimal caliper widths for propensity-score matching when estimating differences in means and differences in proportions in observational studies. Pharmaceutical Statistics, 10(2), 150–161. https://doi.org/10.1002/pst.433
   PubMed Web of Science ®Google Scholar
• Baber, W. R. (1983). Toward understanding the role of auditing in the public sector. Journal of Accounting and Economics, 5, 213–227. https://doi.org/10.1016/0165-4101(83)90013-7
   Web of Science ®Google Scholar
• Ballantine, J., Forker, J., & Greenwood, M. (2007). Earnings management in English NHS hospital trusts. Financial Accountability & Management, 23(4), 421–440. https://doi.org/10.1111/j.1468-0408.2007.00436.x
   Google Scholar
• Beck, A. W. (2018). Opportunistic financial reporting around municipal bond issues. Review of Accounting Studies, 23(3), 785–826. https://doi.org/10.1007/s11142-018-9454-2
   Web of Science ®Google Scholar
• Bisogno, M., & Donatella, P. (2022). Earnings management in public sector organizations: A structured literature review. Journal of Public Budgeting, Accounting & Financial Management, 34(6), 1–25. https://doi.org/10.1108/JPBAFM-03-2021-0035
   Google Scholar
• Brorström, B. (1997). För den goda redovisningsseden. Studentlitteratur.
   Google Scholar
• Chan, J. (2003). Government accounting: An assessment of theory, purposes and standards. Public Money & Management, 23(1), 13–20.
   Web of Science ®Google Scholar
• Cohen, S., Bisogno, M., & Malkogianni, I. (2019). Earnings management in local governments: The role of political factors. Journal of Applied Accounting Research, 20(3), 331–348. https://doi.org/10.1108/JAAR-10-2018-0162
   Web of Science ®Google Scholar
• Cohen, S., & Malkogianni, I. (2021). Sustainability measures and earnings management: Evidence from Greek municipalities. Journal of Public Budgeting, Accounting & Financial Management, 33(4), 365–386. https://doi.org/10.1108/JPBAFM-10-2020-0171
   Google Scholar
• Collins, D. W., Pungaliya, R. S., & Vijh, A. M. (2017). The effects of firm growth and model specification choices on tests of earnings management in quarterly settings. The Accounting Review, 92(2), 69–100. https://doi.org/10.2308/accr-51551
   Web of Science ®Google Scholar
• Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193–225.
   Web of Science ®Google Scholar
• Donatella, P. (2020). Is political competition a driver of financial performance adjustments? An examination of Swedish municipalities. Public Money & Management, 40(2), 122–130. https://doi.org/10.1080/09540962.2019.1667684
   Web of Science ®Google Scholar
• Donatella, P., Haraldsson, M., & Tagesson, T. (2019). Do audit firm and audit costs/fees influence earnings management in Swedish municipalities? International Review of Administrative Sciences, 85(4), 673–691. https://doi.org/10.1177/0020852317748730
   Web of Science ®Google Scholar
• Donatella, P., & Tagesson, T. (2021). CFO characteristics and opportunistic accounting choice in public sector organizations. Journal of Management and Governance, 25(2), 509–534. https://doi.org/10.1007/s10997-020-09521-1
   Web of Science ®Google Scholar
• Ferreira, A., Carvalho, J., & Pinho, F. (2013). Earnings management around zero: A motivation to local politician signalling competence. Public Management Review, 15(5), 657–686. https://doi.org/10.1080/14719037.2012.707679
   Web of Science ®Google Scholar
• Ferreira, A., Carvalho, J., & Pinho, F. (2020). Political competition as a motivation for earnings management close to zero: The case of Portuguese municipalities. Journal of Public Budgeting, Accounting & Financial Management, 32(3), 461–485. https://doi.org/10.1108/JPBAFM-10-2018-0109
   Google Scholar
• Greenwood, M. J., Baylis, R. M., & Tao, L. (2017). Regulatory incentives and financial reporting quality in public healthcare organisations. Accounting and Business Research, 47(7), 831–855. https://doi.org/10.1080/00014788.2017.1343116
   Web of Science ®Google Scholar
• Greenwood, M. J., & Tao, L. (2021). Regulatory monitoring and university financial reporting quality: Agency and resource dependency perspectives. Financial Accountability & Management, 37(2), 163–183. https://doi.org/10.1111/faam.12244
   Web of Science ®Google Scholar
• Greenwood, M., & Zhan, R. (2019). Audit adjustments and public sector audit quality. Abacus, 55(3), 511–534. https://doi.org/10.1111/abac.12165
   Web of Science ®Google Scholar
• Ibrahim, S., Noikokyris, E., Fabiano, G., & Favato, G. (2019). Manipulation of profits in Italian publicly-funded healthcare trusts. Public Money & Management, 39(6), 428–435. https://doi.org/10.1080/09540962.2019.1578539
   Web of Science ®Google Scholar
• Ingram, R. W., & DeJong, D. V. (1987). The effect of regulation on local government disclosure practices. Journal of Accounting and Public Policy, 6(4), 245–270. https://doi.org/10.1016/S0278-4254(87)80002-9
   Web of Science ®Google Scholar
• Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
   Web of Science ®Google Scholar
• Jones, J. J. (1991). Earnings management during import relief investigations. Journal of accounting research, 29(2), 193–228. https://doi.org/10.2307/2491047
   Web of Science ®Google Scholar
• Kido, N., Petacchi, R., & Weber, J. (2012). The influence of elections on the accounting choices of governmental entities. Journal of Accounting Research, 50(2), 443–476. https://doi.org/10.1111/j.1475-679X.2012.00447.x
   Web of Science ®Google Scholar
• Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance-matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197.
   Web of Science ®Google Scholar
• Oulasvirta, L. (2021). A consistent bottom-up approach for deriving a conceptual framework for public sector financial accounting. Public Money & Management, 41(6), 436–446. https://doi.org/10.1080/09540962.2021.1881235
   Web of Science ®Google Scholar
• Pilcher, R., & Van der Zhan, M. (2010). Local governments, unexpected depreciation and financial performance adjustment. Financial Accountability & Management, 26(3), 299–324. http://doi.org/10.1111/j.1468-0408.2010.00503.x
   Google Scholar
• Pina, V., Arcas, M. J., & Marti, C. (2012). Accruals and ‘accounting numbers management’ in UK executive agencies. Public Money & Management, 32(4), 273–280. https://doi.org/10.1080/09540962.2012.691306
   Web of Science ®Google Scholar
• Stalebrink, O. J. (2007). An investigation of discretionary accruals and surplus-deficit management: Evidence from Swedish municipalities. Financial Accountability & Management, 23(4), 441–458. https://doi.org/10.1111/j.1468-0408.2007.00437.x
   Google Scholar
• Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. Prentice-Hall.
   Google Scholar
• Zimmerman, J. (1977). The municipal accounting maze: An analysis of political incentive. Journal of Accounting Research, 15, 107–144. https://doi.org/10.2307/2490636
   Web of Science ®Google Scholar