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Reform for reform's sake: A never-ending story of governmental accounting change

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  • Josette Caruana,

Abstract

This paper applies a qualitative approach to examine the environment surrounding the governmental accounting reform process in Malta using Luder's Financial Management Reform Process Model. The Governmental accounting reform at central level in Malta is a process that has been going on for over 15 years and is still unfinished business. The issue of a tender in 2014 to acquire a new accounting system was a tangible step towards implementation of accrual accounting, however, uncertainties surround the required funds, the underlying new financial legislation and the applicable financial reporting standards. The case of Malta presents an example of a country that is taking advantage of EU politics in order to gain legitimacy. Given the ceremonial and legitimating features of the reform process, institutional theory is introduced in Luder's Model, putting forward an integrated model that distinguishes between the demands and effects of the technical and institutional environments. The combination of institutional and contingency theories provides a more holistic understanding of the accounting reform process.

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  • Josette Caruana,, 2017. "Reform for reform's sake: A never-ending story of governmental accounting change," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(5), pages 676-705, December.
    • Handle: RePEc:pdc:jrnbeh:v:13:y:2017:i:5:p:676-705
    DOI: 10.15208/beh.2017.46
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    More about this item

    Keywords

    Contingency theory; governmental accounting reform; institutional theory.;
    All these keywords.

    JEL classification:

    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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