IDEAS home Printed from https://ideas.repec.org/a/eee/reacre/v29y2017i1p1-9.html
   My bibliography  Save this article

Why municipalities fail: Implications for uncertainty disclosures

Author

Listed:
  • Beck, Amanda W.
  • Stone, Mary S.

Abstract

Why Nations Fail (Acemoglu and Robinson 2012), a book widely and favorably reviewed by the business press (MacLeod 2013), identifies political and economic factors that allow some jurisdictions to prosper while other, often geographically and culturally similar, jurisdictions languish. The book's propositions are based on detailed case studies of countries across time and continents. The study summarized here follows a similar approach by relying on hand-collected evidence of municipalities that failed in the sense they ceased to exist as separate legal entities.11The research described in this article was funded by a GASB Gil Crain Grant. The policy recommendations in this article were not included in the report provided to the GASB. This evidence is used as a basis for identifying misconceptions about governments as going concerns, redefining what it means for a government to be a going concern, suggesting ways to improve disclosures related to going concern uncertainty (as redefined), and identifying questions for future policy-relevant research.

Suggested Citation

  • Beck, Amanda W. & Stone, Mary S., 2017. "Why municipalities fail: Implications for uncertainty disclosures," Research in Accounting Regulation, Elsevier, vol. 29(1), pages 1-9.
    • Handle: RePEc:eee:reacre:v:29:y:2017:i:1:p:1-9
    DOI: 10.1016/j.racreg.2017.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1052045717300012
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.racreg.2017.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jiang, Wei & Rupley, Kathleen Hertz & Wu, Jia, 2010. "Internal control deficiencies and the issuance of going concern opinions," Research in Accounting Regulation, Elsevier, vol. 22(1), pages 40-46.
    2. W. Bentley MacLeod, 2013. "On Economics: A Review of Why Nations Fail by D. Acemoglu and J. Robinson and Pillars of Prosperity by T. Besley and T. Persson," Journal of Economic Literature, American Economic Association, vol. 51(1), pages 116-143, March.
    3. Fitzgerald, Brian C. & Giroux, Gary A., 2014. "Voluntary formation of audit committees by large municipal governments," Research in Accounting Regulation, Elsevier, vol. 26(1), pages 67-74.
    4. Gore, Angela K., 2004. "The effects of GAAP regulation and bond market interaction on local government disclosure," Journal of Accounting and Public Policy, Elsevier, vol. 23(1), pages 23-52.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hegedűs, Szilárd & Lentner, Csaba & Molnár, Petronella, 2019. "Past and Future: New Ways in Municipal (Property) Management after Debt Consolidation — In Focus: Towns with County Rights," Public Finance Quarterly, Corvinus University of Budapest, vol. 64(1), pages 51-71.
    2. Amanda W. Beck, 2018. "Opportunistic financial reporting around municipal bond issues," Review of Accounting Studies, Springer, vol. 23(3), pages 785-826, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brown, Kareen E. & Elayan, Fayez A. & Li, Jingyu & Mohammad, Emad & Pacharn, Parunchana & Liu, Zhefeng Frank, 2016. "To exempt or not to exempt non-accelerated filers from compliance with the auditor attestation requirement of Section 404(b) of the Sarbanes–Oxley Act," Research in Accounting Regulation, Elsevier, vol. 28(2), pages 86-95.
    2. Agnes C. S. Cheng & Wenli Huang & Shaojun Zhang, 2020. "Major government customer and management earnings forecasts," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-20, December.
    3. repec:cuf:journl:y:2017:v:18:i:1:moreno-enguix is not listed on IDEAS
    4. Aoki, Masahiko, 2014. "Economic and Political Transitions from Premodern to Modern States in the Meiji Restoration and Xinhai Revolution: A Strategic Approach," ADBI Working Papers 486, Asian Development Bank Institute.
    5. Juan Pérez Velasco Pavón, 2014. "Economic behavior of indigenous peoples: the Mexican case," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-58, December.
    6. Ivanov, Ivan T. & Zimmermann, Tom, 2024. "The “Privatization” of municipal debt," Journal of Public Economics, Elsevier, vol. 237(C).
    7. Yu‐Feng Hsu & Wei‐Po Lee, 2020. "Evaluation of the going‐concern status for companies: An ensemble framework‐based model," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 39(4), pages 687-706, July.
    8. Jiang, Haiyan & Chen, Jun, 2019. "Short selling and financial reporting quality: Evidence from Chinese AH shares," Journal of Contemporary Accounting and Economics, Elsevier, vol. 15(1), pages 118-130.
    9. Dowdell, Thomas D. & Kim, Jang-Chul & Klamm, Bonnie K. & Watson, Marcia Weidenmier, 2013. "Internal control reporting and market liquidity," Research in Accounting Regulation, Elsevier, vol. 25(1), pages 30-40.
    10. Kuang, Yu Flora & Lee, Gladys, 2017. "Corporate fraud and external social connectedness of independent directors," Journal of Corporate Finance, Elsevier, vol. 45(C), pages 401-427.
    11. Arrouna Keita & Camelia Turcu, 2020. "Natural Resource Discoveries and Fiscal Discipline," Working Papers 2020.07, International Network for Economic Research - INFER.
    12. Janilson Antonio da Silva Suzart & Ariovaldo dos Santos, 2016. "The Predictive Value of Government Accounting Information and the Secondary Brazilian Bond Market," International Business Research, Canadian Center of Science and Education, vol. 9(4), pages 31-44, April.
    13. Wu, Jiabin, 2017. "Political institutions and the evolution of character traits," Games and Economic Behavior, Elsevier, vol. 106(C), pages 260-276.
    14. Rasa Kanapickiene & Greta Keliuotyte-Staniuleniene, 2019. "Disclosure of Non-Current Tangible Assets Information in Local Government Financial Statements: The Case of Lithuania," Economies, MDPI, vol. 7(4), pages 1-25, December.
    15. Xingqiang Du & Yiqi Zhang & Shaojuan Lai & Hexin Tao, 2024. "How Do Auditors Value Hypocrisy? Evidence from China," Journal of Business Ethics, Springer, vol. 191(3), pages 501-533, May.
    16. Claude Ménard, 2014. "The diversity of institutional rules as engine of change," Journal of Bioeconomics, Springer, vol. 16(1), pages 83-90, April.
    17. Nolan Kido & Reining Petacchi & Joseph Weber, 2012. "The Influence of Elections on the Accounting Choices of Governmental Entities," Journal of Accounting Research, Wiley Blackwell, vol. 50(2), pages 443-476, May.
    18. Changwony, Frederick Kibon & Paterson, Audrey S., 2019. "Accounting practice, fiscal decentralization and corruption," The British Accounting Review, Elsevier, vol. 51(5).
    19. Christine Cuny & Jungbae Kim & Mihir N. Mehta, 2020. "Politically Connected Governments," Journal of Accounting Research, Wiley Blackwell, vol. 58(4), pages 915-952, September.
    20. Maria del Rocio Moreno-Enguix & Ester Gras-Gil & Joaquin Hernandez-Fernandez, 2017. "An Explanation of Management of Local Governments in Spain Based on the Structure of the Internal Control System," Annals of Economics and Finance, Society for AEF, vol. 18(2), pages 393-410, November.
    21. Wu, Jiabin, 2016. "Political Institutions and Preference Evolution," MPRA Paper 69597, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reacre:v:29:y:2017:i:1:p:1-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/research-in-accounting-regulation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.