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Why municipalities fail: Implications for uncertainty disclosures

Author

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  • 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
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    References listed on IDEAS

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    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.
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    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.

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