IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v12y2017i3p27.html

From Accountability to Readability in the Public Sector: Evidence from Italian Universities

Author

Listed:
  • Alessandra Allini
  • Luca Ferri
  • Marco Maffei
  • Annamaria Zampella

Abstract

This paper aims to explore the readability of the disclosure provided by Italian universities that changed their accounting systems to accrual accounting over the past three years. The transition from cash to accrual accounting not only concerns financial statements, but also the related notes. Indeed, the Italian government has paid great attention to the narrative sections of reports due to their capacity to provide more transparency. To provide better accountability, financial statements must be readable for all stakeholders. We used two different indexes, namely the Gunning fog and GULPEase indexes. The analysis was conducted on a sample of universities to analyze the narrative sections of the first financial statements prepared according to the new accounting system in 2012–2014. The final sample comprised 32 Italian universities. The research results demonstrated low readability in the balance sheets of Italian universities after switching to accrual accounting, illustrating an unsatisfactory level of accountability.

Suggested Citation

  • Alessandra Allini & Luca Ferri & Marco Maffei & Annamaria Zampella, 2017. "From Accountability to Readability in the Public Sector: Evidence from Italian Universities," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(3), pages 1-27, February.
    • Handle: RePEc:ibn:ijbmjn:v:12:y:2017:i:3:p:27
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/65873/36066
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/65873
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Henk J. ter Bogt & Robert W. Scapens, 2012. "Performance Management in Universities: Effects of the Transition to More Quantitative Measurement Systems," European Accounting Review, Taylor & Francis Journals, vol. 21(3), pages 451-497, February.
    2. Biddle, Gary C. & Hilary, Gilles & Verdi, Rodrigo S., 2009. "How does financial reporting quality relate to investment efficiency?," Journal of Accounting and Economics, Elsevier, vol. 48(2-3), pages 112-131, December.
    3. Roberts, John & Scapens, Robert, 1985. "Accounting systems and systems of accountability -- understanding accounting practices in their organisational contexts," Accounting, Organizations and Society, Elsevier, vol. 10(4), pages 443-456, October.
    4. Li, Feng, 2008. "Annual report readability, current earnings, and earnings persistence," Journal of Accounting and Economics, Elsevier, vol. 45(2-3), pages 221-247, August.
    5. Vivien Beattie & Bill McInnes & Stella Fearnley, 2004. "A methodology for analysing and evaluating narratives in annual reports: a comprehensive descriptive profile and metrics for disclosure quality attributes," Accounting Forum, Taylor & Francis Journals, vol. 28(3), pages 205-236, September.
    6. Irvine Lapsley & Riccardo Mussari & Gert Paulsson, 2009. "On the Adoption of Accrual Accounting in the Public Sector: A Self-Evident and Problematic Reform," European Accounting Review, Taylor & Francis Journals, vol. 18(4), pages 719-723.
    7. Hood, Christopher, 1995. "The "new public management" in the 1980s: Variations on a theme," Accounting, Organizations and Society, Elsevier, vol. 20(2-3), pages 93-109.
    8. R.M. Haniffa & T. E. Cooke, 2002. "Culture, Corporate Governance and Disclosure in Malaysian Corporations," Abacus, Accounting Foundation, University of Sydney, vol. 38(3), pages 317-349, October.
    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. Carla Del Gesso & Luca Romagnoli, 2021. "Citizen-Centered Reporting: Assessing Popular Financial Reporting Practice in Italian Decentralized Governments," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(2), pages 1-1, July.
    2. Fahd Alduais & Nashat Ali Almasria & Abeer Samara & Ali Masadeh, 2022. "Conciseness, Financial Disclosure, and Market Reaction: A Textual Analysis of Annual Reports in Listed Chinese Companies," IJFS, MDPI, vol. 10(4), pages 1-22, November.

    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. Emna JABALLAH & Wided YOUSFI & Mohamed Ali ZARAI, 2014. "Quality of financial reports: Evidence from the Tunisian firms," E3 Journal of Business Management and Economics., E3 Journals, vol. 5(2), pages 030-038.
    2. Alessandra Allini & Adele Caldarelli & Rosanna Span?, 2017. "La disclosure nei Piani della Performance delle universit? italiane. Intenti simbolici verso approcci sostanziali di legittimazione," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2017(1), pages 37-59.
    3. Alessandra Allini & Adele Caldarelli & Rosanna Span? & Annamaria Zampella, 2019. "Legitimating efforts in Performance Plans. Evidences on the thoroughness of disclosure in the Italian Higher Education setting," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1), pages 143-168.
    4. Alessandra Allini & Rosanna Span? & Annamaria Zampella & Fiorenza Meucci, 2020. "Integrated Performance Plans in Higher Education as means of accounting change. Insights into the Italian context," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(1), pages 87-110.
    5. Elisa Bonollo, 2015. "Disclosures in Local Healthcare Organizations? Social Reports. ?What?? and ?Why?? An Empirical Analysis of the Italian National Healthcare System," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2015(1), pages 41-75.
    6. Chung, Dennis Y. & Hrazdil, Karel & Novak, Jiri & Suwanyangyuan, Nattavut, 2019. "Does the large amount of information in corporate disclosures hinder or enhance price discovery in the capital market?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 15(1), pages 36-52.
    7. Riccardo, Macchioni & Giuseppe, Sannino & Gianluca, Ginesti & Carlo, Drago, 2013. "Firms’ disclosure compliance with IASB’s Management Commentary framework:an empirical investigation," MPRA Paper 59321, University Library of Munich, Germany.
    8. Qian Wang & Duowen Wu & Lina Yan, 2021. "Effect of positive tone in MD&A disclosure on capital structure adjustment speed: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5809-5845, December.
    9. Samuel B. Bonsall & Brian P. Miller, 2017. "The impact of narrative disclosure readability on bond ratings and the cost of debt," Review of Accounting Studies, Springer, vol. 22(2), pages 608-643, June.
    10. Ferry, Laurence & Zakaria, Zamzulaila & Zakaria, Zarina & Slack, Richard, 2018. "Framing public governance in Malaysia: Rhetorical appeals through accrual accounting," Accounting forum, Elsevier, vol. 42(2), pages 170-183.
    11. Hidaya Lawati & Khaled Hussainey & Roza Sagitova, 2021. "Disclosure quality vis-à-vis disclosure quantity: Does audit committee matter in Omani financial institutions?," Review of Quantitative Finance and Accounting, Springer, vol. 57(2), pages 557-594, August.
    12. Mohammed Mahmud Kakanda, & Basariah Salim, & Sitraselvi Chandren,, 2017. "Do board characteristics and risk management disclosure have any effect on firm performance? Empirical evidence from Deposit Money Banks (DMBs) in Nigeria," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(4), pages 506-521, October.
    13. Sharma, Shivani & Sharma, Udayan, 2025. "What does green bond prospectus communicate about credit spread?," Finance Research Letters, Elsevier, vol. 79(C).
    14. Karthik Balakrishnan & John E. Core & Rodrigo S. Verdi, 2014. "The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 52(1), pages 1-36, March.
    15. Chen, Jean Jinghan & Song, Peiyang & Loi, Fai Lim, 2024. "Strategic forward-looking nonearnings disclosure and overinvestment," The British Accounting Review, Elsevier, vol. 56(6).
    16. Elisa Menicucci & Guido Paolucci, 2021. "Forward-Looking Intellectual Capital Information in Integrated Reporting: An Empirical Analysis," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(8), pages 167-167, July.
    17. Oz, Seda, 2024. "The impact of terrorist attacks and mass shootings on earnings management," The British Accounting Review, Elsevier, vol. 56(3).
    18. 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.
    19. Lu Wei & Shufan Ma & Maoze Wang, 2025. "Understanding the information characteristics of consumers’ online reviews: the evidence from Chinese online apparel shopping," Electronic Commerce Research, Springer, vol. 25(4), pages 3071-3097, August.
    20. Asiri, Mohammed & Al-Hadi, Ahmed & Taylor, Grantley & Duong, Lien, 2020. "Is corporate tax avoidance associated with investment efficiency?," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:ibn:ijbmjn:v:12:y:2017:i:3:p:27. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.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.