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Construction of Municipalities´ Financial Health Indicator
[Konstrukce ukazatele finančního zdraví municipálních organizací]

Author

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  • Michal Svoboda

Abstract

The aim of this article is to find a multicriterial indicator of financial health of municipalities. Such an indicator should meet the need for a robustness and complexity to cover all the significant areas of activities of municipalities. It should be also understandable for key users of the information on financial situation of a municipality - for its citizens. This concept of its construction has been made using a literature search method in this field since 1960s and synthesis of its findings into 6 basic dimensions of such an indicator. Each of this 6 dimensions should allow a drill-down approach to get 2 - 3 partial aspects of that dimension. Also these should be evaluated separately.

Suggested Citation

  • Michal Svoboda, 2015. "Construction of Municipalities´ Financial Health Indicator [Konstrukce ukazatele finančního zdraví municipálních organizací]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2015(4), pages 150-160.
    • Handle: RePEc:prg:jnlcfu:v:2015:y:2015:i:4:id:464:p:150-160
    DOI: 10.18267/j.cfuc.464
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    References listed on IDEAS

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    1. Stewart Jones & R. G. Walker, 2007. "Explanators of Local Government Distress," Abacus, Accounting Foundation, University of Sydney, vol. 43(3), pages 396-418, September.
    2. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 71-111.
    3. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    4. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
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    More about this item

    Keywords

    Financial Health; Public Sector; Municipalities; Public Sector Accounting; Financial Health Indicator; Finanční zdraví; Veřejný sektor; Municipality; Účetnictví veřejného sektoru; Ukazatel finančního zdraví;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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