Factors influencing local government financial sustainability: an empirical study

  • Manuel Pedro Rodríguez Bolívar University of Granada
  • Andrés Navarro Galera University of Granada
  • Laura Alcaide Muñoz University of Granada
  • María Deseada López Subirés University of Granada
Keywords: Financial sustainability, Local governments

Abstract

In the present context of international public finance crisis, the analysis of government sustainability is considered of vital importance, and a significant element in this is the accounting measurement of intergenerational equity. The aim of this paper is to identify factors that may influence the financial sustainability of local government, doing so through the analysis of 116 local administrations in Spain. Based on Pearson correlation analysis, our main findings show that the annual budget result is a key determinant of local government financial sustainability, and highlight the value of controlling the balance of budget expenditures in preventing future problems of viability for these local authority services.

Author Biographies

Manuel Pedro Rodríguez Bolívar, University of Granada
Department of Accounting and Finance Associate Professor
Andrés Navarro Galera, University of Granada
Department of Accounting and Finance Professor
Laura Alcaide Muñoz, University of Granada
Department of Accounting and Finance Lecturer
Published
2013-10-02
Section
Articles