IDEAS home Printed from https://ideas.repec.org/a/taf/pubmmg/v38y2018i1p57-64.html
   My bibliography  Save this article

Playing for keeps: local government distortion of depreciation accruals in response to high-stakes public policy-making

Author

Listed:
  • Joseph Drew

Abstract

Use of discretionary accounting accruals has long been recognized as a vehicle for earnings management in the private sector. More recently, evidence has emerged suggesting that public officials may similarly manipulate discretionary accruals in order to achieve ‘balanced’ operating results. This paper extends the previous literature on the manipulation of depreciation accruals to the realm of high-stakes public policy-making.

Suggested Citation

  • Joseph Drew, 2018. "Playing for keeps: local government distortion of depreciation accruals in response to high-stakes public policy-making," Public Money & Management, Taylor & Francis Journals, vol. 38(1), pages 57-64, January.
    • Handle: RePEc:taf:pubmmg:v:38:y:2018:i:1:p:57-64
    DOI: 10.1080/09540962.2017.1389542
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09540962.2017.1389542
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09540962.2017.1389542?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph Drew & Brian Dollery, 2015. "Inconsistent Depreciation Practice and Public Policymaking: Local Government Reform in New South Wales," Australian Accounting Review, CPA Australia, vol. 25(1), pages 28-37, March.
    2. Joseph Drew & Brian Dollery, 2014. "The impact of metropolitan amalgamations in Sydney on municipal financial sustainability," Public Money & Management, Taylor & Francis Journals, vol. 34(4), pages 281-288, July.
    3. Copeland, Rm, 1968. "Income Smoothing," Journal of Accounting Research, Wiley Blackwell, vol. 6, pages 101-116.
    4. Carol A. Marquardt & Christine I. Wiedman, 2004. "How Are Earnings Managed? An Examination of Specific Accruals," Contemporary Accounting Research, John Wiley & Sons, vol. 21(2), pages 461-491, June.
    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. Pierre Donatella & Torbjörn Tagesson, 2021. "CFO characteristics and opportunistic accounting choice in public sector organizations," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 509-534, June.

    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. Joseph Drew & Brian Dollery, 2015. "Inconsistent Depreciation Practice and Public Policymaking: Local Government Reform in New South Wales," Australian Accounting Review, CPA Australia, vol. 25(1), pages 28-37, March.
    2. Joseph Drew & Brian Dollery, 2016. "A Factor Analytic Assessment of Financial Sustainability: The Case of New South Wales Local Government," Australian Accounting Review, CPA Australia, vol. 26(2), pages 132-140, June.
    3. Chii-Shyan Kuo & Jia-Jye Yu & Feng-Chen Chang, 2022. "Revenue recognition and channel stuffing in the Taiwanese semiconductor industry," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(3), pages 352-361, September.
    4. Carolyn‐Dung Thi Thanh Tran & Brian Dollery, 2021. "All in the Mind: Citizen Satisfaction and Financial Performance in the Victorian Local Government System," Australian Accounting Review, CPA Australia, vol. 31(1), pages 51-64, March.
    5. Joseph Drew & Brian Dollery, 2015. "Debate: Rejoinder to Sansom (2015)," Public Money & Management, Taylor & Francis Journals, vol. 35(6), pages 395-396, November.
    6. Jean-Louis Paré & Frédéric Demerens, 2011. "Détecter les manipulations financières en France : Le cas d'une PME cotée sur Alternext," Post-Print hal-00650559, HAL.
    7. Jiao, T. & Mertens, G.M.H. & Roosenboom, P.G.J., 2007. "Industry Valuation Driven Earnings Management," ERIM Report Series Research in Management ERS-2007-069-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Oriol Amat & Catherine Gowthorpe, 2004. "Creative accounting: Nature, incidence and ethical issues," Economics Working Papers 749, Department of Economics and Business, Universitat Pompeu Fabra.
    9. Nagar, Neerav & Sen, Kaustav, 2016. "Earnings Management Strategies during Financial Distress," IIMA Working Papers WP2016-02-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    10. Stewart Jones & Nurul Alam, 2019. "A machine learning analysis of citation impact among selected Pacific Basin journals," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(4), pages 2509-2552, December.
    11. Makoto Kuroki, 2022. "Impact of Depreciation Information on Capital Budgeting among Local Governments: A Survey Experiment," Australian Accounting Review, CPA Australia, vol. 32(2), pages 201-213, June.
    12. Silva, Aldy Fernandes da & Weffort, Elionor Farah Jreige & Flores, Eduardo da Silva & Silva, Glauco Peres da, 2014. "Gerenciamento de resultados e crises econômicas no mercado de capitais brasileiro," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 54(3), May.
    13. Timothy A. Seidel & Chad A. Simon & Nathaniel M. Stephens, 2020. "Management bias across multiple accounting estimates," Review of Accounting Studies, Springer, vol. 25(1), pages 1-53, March.
    14. Ibrahim, Salma & Xu, Li & Kalchev, Georgi & Deal, Candice Linette, 2013. "Legal Consequences of Earnings Components Management," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11, pages 229-259.
    15. Maria Jose Arcas & Caridad Martí, 2016. "Financial Performance Adjustment in English Local Governments," Australian Accounting Review, CPA Australia, vol. 26(2), pages 141-152, June.
    16. Margaret J. Greenwood & Richard M. Baylis & Lei Tao, 2017. "Regulatory incentives and financial reporting quality in public healthcare organisations," Accounting and Business Research, Taylor & Francis Journals, vol. 47(7), pages 831-855, November.
    17. Serena Santis, 2020. "The Demographic and Economic Determinants of Financial Sustainability: An Analysis of Italian Local Governments," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    18. Kasanen, Eero & Kinnunen, Juha & Niskanen, Jyrki, 1996. "Dividend-based earnings management: Empirical evidence from Finland," Journal of Accounting and Economics, Elsevier, vol. 22(1-3), pages 283-312, October.
    19. Antonia Botsari & Geoff Meeks, 2008. "Do Acquirers Manage Earnings Prior to a Share for Share Bid?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(5‐6), pages 633-670, June.
    20. Ke Zhong & Robert B. Welker & Donald W. Gribbin, 2010. "Method‐Shifting in Aggressive Earnings Reporting: The Case of the US Software Industry's Response to New US Regulation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(7‐8), pages 792-814, July.

    More about this item

    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:taf:pubmmg:v:38:y:2018:i:1:p:57-64. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RPMM20 .

    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.