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How to Manage the Components of Financial Sustainability in Local Governments

Author

Listed:
  • Serena Santis
  • Alberto Incollingo
  • Francesca Citro

Abstract

This study aims to evaluate three dimensions proposed by the IFAC (International Federation of Accountants) in relation to impact financial sustainability. These dimensions are service, revenue, and debt. In 2017 and 2018, a regression analysis was conducted for Italian local governments on the different components of financial sustainability. Based on goal-setting theory, and in combination with the ambition to pursue adequate good financial sustainability, significant results were demonstrated. It was seen that these local governments would have to maintain a good level of autonomy with current revenue. They would also need to control the quantity and quality of service in order to pursue financial sustainability. This study suggests practical implications for policymakers and the managerial class, and it seeks to identify methods to drive and keep financial sustainability under control. It also seeks to define current and future management strategies that focus on pursuing intergenerational equity in local governments.

Suggested Citation

  • Serena Santis & Alberto Incollingo & Francesca Citro, 2021. "How to Manage the Components of Financial Sustainability in Local Governments," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 11(2), pages 111-111, December.
    • Handle: RePEc:ibn:jmsjnl:v:11:y:2021:i:2:p:111
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    References listed on IDEAS

    as
    1. Ms. Jocelyn Horne, 1991. "Indicators of Fiscal Sustainability," IMF Working Papers 1991/005, International Monetary Fund.
    2. Andrés Navarro-Galera & Manuel Pedro Rodríguez-Bolívar & Laura Alcaide-Muñoz & María Deseada López-Subires, 2016. "Measuring the financial sustainability and its influential factors in local governments," Applied Economics, Taylor & Francis Journals, vol. 48(41), pages 3961-3975, September.
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    More about this item

    JEL classification:

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

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