IDEAS home Printed from https://ideas.repec.org/a/mgt/youmng/v14y2019i2p137-149.html
   My bibliography  Save this article

The Influence of Audit and Hospital Council on Financial Statements’ Results in Slovenian Hospitals

Author

Listed:
  • Tatjana Horvat

    (University of Primorska, Slovenia)

  • Darko Cander

    (Health Center of dr. Adolf Drolc Maribor, Slovenia)

Abstract

This study focuses on the connection of frequency of monitoring financial statements by internal auditors and by hospital councils with the efficiency of operations in Slovenian hospitals. The aim of the hospital is not making profit; however, it has to be economical to operate, which means that it must generate a surplus of revenues over expenditures, which is reflected in the annual financial statements. The financial statements are the responsibility of management. Founder of the hospitals is Republic of Slovenia, all the founder’s rights and obligations are exercised by the Government of the Republic of Slovenia. In Slovenia there are 26 public hospitals (the population) and they are divided into ten general hospitals, seven specialist hospitals, five psychiatric hospitals, two maternity hospitals and two clinical centres. The State budget and the Health Insurance Institute of Slovenia (HIIS) are the main sources of public financing Slovenian hospitals. Sources of financing hospitals are also evident in annual financial statements of each hospital. In the study, the 25 Slovenian public hospitals (the sample), which mostly represent Slovenian health system, have been analysed. We collected data with the survey questionnaire and from their published financial statements for 2014. For testing two hypotheses, we used contingency table and Chi- Square test. The results showed that the frequency of internal audits is not connected with the efficiency of operations in Slovenian hospitals, but the frequency of hospital council’s supervision is connected with the efficiency of operations. Hospitals with more often monitoring of results in financial statements by hospital councils have surpluses in revenues (making profit). Findings suggest to focus on quality not only on frequency of internal audits and to propose to hospitals with surpluses in expenditures to have more often monitoring by hospital councils. Findings suggest to hospitals to focus on quality of planning revenues and costs. The paper suggests to health policy makers to develop hospital’s corporate governance. The effective corporate governance in hospitals, with clear responsibilities of managers, auditors and councils, might effects on fiscal stability of the health system and the balance between all hospital’s stakeholders.

Suggested Citation

  • Tatjana Horvat & Darko Cander, 2019. "The Influence of Audit and Hospital Council on Financial Statements’ Results in Slovenian Hospitals," Management, University of Primorska, Faculty of Management Koper, vol. 14(2), pages 137-149.
    • Handle: RePEc:mgt:youmng:v:14:y:2019:i:2:p:137-149
    DOI: 10.26493/1854-4231.14.138-149
    as

    Download full text from publisher

    File URL: http://www.hippocampus.si/ISSN/1854-4231/14.137-149.pdf
    File Function: full text
    Download Restriction: no
    File URL: https://libkey.io/10.26493/1854-4231.14.138-149?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
    ---><---

    References listed on IDEAS

    as
    1. Vito Bobek & Anita MaÄ ek, 2014. "Negative effects of the WTO - the case of automotive industry in Russia," International Journal of Diplomacy and Economy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 71-83.
    2. Dorota Dobija, 2015. "Exploring audit committee practices: oversight of financial reporting and external auditors in Poland," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 113-143, February.
    3. Baker, C. Richard & Wallage, Philip, 2000. "The Future of Financial Reporting in Europe: Its Role in Corporate Governance," The International Journal of Accounting, Elsevier, vol. 35(2), pages 173-187, July.
    4. Pirozek, Petr & Komarkova, Lenka & Leseticky, Ondrej & Hajdikova, Tatana, 2015. "Corporate governance in Czech hospitals after the transformation," Health Policy, Elsevier, vol. 119(8), pages 1086-1095.
    Full references (including those not matched with items on IDEAS)

    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. Ali Uyar & Cemil Kuzey & Merve Kilic & Abdullah S. Karaman, 2021. "Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1730-1748, November.
    2. Mohammad Enamul Hoque, 2017. "Why Company Should Adopt Integrated Reporting?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 241-248.
    3. Ahmed Aboud & Ahmed Diab, 2022. "Ownership Characteristics and Financial Performance: Evidence from Chinese Split-Share Structure Reform," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    4. Hakan Cavlak, 2021. "Evaluations on the Future of Corporate and Financial Reporting," Muhasebe Enstitusu Dergisi - Journal of Accounting Institute, Istanbul University Business School, vol. 64(64), pages 39-58.
    5. Gad Jacek, 2023. "Concentration on the market of audit services provided to publicly listed companies: Evidence from Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(1), pages 32-45, March.
    6. Iulia JIANU, 2012. "Investors’ Perception Regarding The Role Of The Economic Entity In Regional Development," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2012(8), pages 268-276, June.
    7. Francesca Gennari & Daniela M. Salvioni, 2019. "CSR committees on boards: the impact of the external country level factors," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 759-785, September.
    8. Dorota Dobija & Claudia Arena & Łukasz Kozłowski & Joanna Krasodomska & Justyna Godawska, 2023. "Towards sustainable development: The role of directors' international orientation and their diversity for non‐financial disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 66-90, January.
    9. Francesca Gennari, 2019. "How to Lead the Board of Directors to a Sustainable Development of Business with the CSR Committees," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    10. Kristýna Havlová, 2016. "IFRS vs. CAL: summary of practical knowledge and identification of research questions," Ekonomika a Management, Prague University of Economics and Business, vol. 2016(2).
    11. Nirosh Kuruppu & Peter Oyelere & Hamdan Al Jabri, 2015. "Internet Financial Reporting And Disclosure Practices Of Publicly Traded Corporations: Evidence From Sri Lanka," Accounting & Taxation, The Institute for Business and Finance Research, vol. 7(1), pages 75-91.
    12. Diana MureÅŸan, 2012. "Retrospective Of Financial Reporting On Capital Market," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-8.
    13. Li Wu & Conghua Ji & Hanti Lu & Xuewen Hong & Shan Liu & Ying Zhang & Qiushuang Li & Sijia Huang & Penglei Zhou & Jiong Yao & Yuxiu Hu, 2018. "Standardization of medical service indicators: A useful technique for hospital administration," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-13, November.
    14. Ionel JIANU, 2015. "The Role of Food Companies in Consumer Protection Through the Sustainable Reporting," The Journal of Accounting and Management, Danubius University of Galati, issue 3, pages 75-84, December.
    15. Puławska Karolina & Dobija Dorota & Piotrowska Katarzyna & Kravchenko Grygorii, 2021. "Audit Committee Formation: The Case of Poland," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(2), pages 169-212, June.
    16. Jianu Iulia, 2012. "Study Regarding The Relevance Of The Information Disclosed In The Romanian Financial Statement," EuroEconomica, Danubius University of Galati, issue 4(31), pages 21-32, November.
    17. Matthias Klumpp & Dominic Loske & Silvio Bicciato, 2022. "COVID-19 health policy evaluation: integrating health and economic perspectives with a data envelopment analysis approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(8), pages 1263-1285, November.
    18. Nurfarahin M. Haridan & Ahmad F. S. Hassan & Yusuf Karbhari, 2018. "Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 1015-1043, December.
    19. De Regge, Melissa & Eeckloo, Kristof, 2020. "Balancing hospital governance: A systematic review of 15 years of empirical research," Social Science & Medicine, Elsevier, vol. 262(C).
    20. Pascal Dumontier, 2004. "Essor des marchés boursiers et croissance de l’immatériel:de nouveaux défis pour la comptabilité," Revue Finance Contrôle Stratégie, revues.org, vol. 7(2), pages 11-32, June.

    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:mgt:youmng:v:14:y:2019:i:2:p:137-149. 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: Alen Jezovnik (email available below). General contact details of provider: https://edirc.repec.org/data/fmkupsi.html .

    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.