Artikel
The inefficacy of accrual accounting in public sector performance management: Evidence from an emerging market
This study aims to investigate the impact of accrual accounting adoption on Indonesian local governments. In particular, this study examines the differences of financial performance before and after the accrual adoption and the usefulness of accrual accounting information for public managers. Using mixed-method, data was collected from secondary sources and interviews. T Test for paired samples and Wilcoxon Signed Rank were employed to examine the statistical difference of Indonesian local government financial ratios before and after the adoption. Interviews were undertaken with local government managers and their consultants. To provide comprehensive understanding and discussion, this study adopts a theoretical pluralism using old institutional economics (OIE) and new institutional sociology (NIS) conjointly. The quantitative part demonstrated mixed results and lack of benefit of accrual accounting adoption in the Indonesian local governments. In the same vein, the qualitative part unveiled the failure of institutionalisation of new public management (NPM) values and principles that explained a marginal role of accrual accounting information in public managers decision-making process. The paper contributes to the continuing debate of the benefits of accrual accounting adoption for local governments.
- Language
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Englisch
- Bibliographic citation
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Journal: Cogent Business & Management ; ISSN: 2331-1975 ; Volume: 9 ; Year: 2022 ; Issue: 1 ; Pages: 1-20
- Classification
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Management
- Subject
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Indonesia
financial performance
institutional theory
Accrual accounting
local government
NPM
- Event
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Geistige Schöpfung
- (who)
-
Fahlevi, Heru
Irsyadillah, Irsyadillah
Arafat, Imam
Adnan, Muhammad Ichsan
- Event
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Veröffentlichung
- (who)
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Taylor & Francis
- (where)
-
Abingdon
- (when)
-
2022
- DOI
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doi:10.1080/23311975.2022.2122162
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Fahlevi, Heru
- Irsyadillah, Irsyadillah
- Arafat, Imam
- Adnan, Muhammad Ichsan
- Taylor & Francis
Time of origin
- 2022
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