Financial and non-financial performance measurement at the municipal group level – Evidence from municipal budgets in Sweden
Bibliographic Data
| ID | 20201469 |
|---|---|
| Authors | Mattias Haraldsson (0000-0002-0178-4615, Lund University School of Economics and Management Department of Business Administration, corresponding author) |
| Year | 2025 |
| Volume | 37 |
| Issue | 6 |
| Pages | 28-48 |
| Publication date | 2025-12-15 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Public Budgeting Accounting & Financial Management (JOURNAL) |
| Journal identifiers | ISSN: 1096-3367 • E-ISSN: 1945-1814 |
| Publisher | Emerald (PUBLISHER) |
| DOI | 10.1108/jpbafm-06-2024-0092 |
| OpenAlex | W4407852656 |
| Language | EN |
| References cited | 45 |
Purpose This paper aims to explore Swedish municipalities’ adoption of politically decided goals and targets, within the budget document, that are formulated for the accounting unit of the municipal group. Design/methodology/approach A regression analysis of the adoption of financial and non-financial performance measurement by 289 Swedish municipalities was performed, including eight independent variables and several control variables. Findings Of the municipalities, 26% adopted financial and 13% non-financial goals and targets in their 2021 budgets. The former choice appears to be driven by functional rationality, while the latter is driven by institutional and political incentives. The low adoption level of performance measurement implies that political group-level management has not yet adapted to new organisational conditions. Practical implications To enhance political governance and accountability, controllers should assist politicians in incorporating municipal group goals into the budget. Not least, more attention should be given to non-financial perspectives, as they better support strategy implementation and better promote comprehensive accountability to citizens and stakeholders. A further implication for policymakers is that when designing future legal financial and non-financial requirements for municipalities, it is important to define those at the municipal group level. Originality/value This study empirically and theoretically contributes to previous research on the adoption of performance measurement as it is the first study to explore the adoption pattern of financial and non-financial performance measurement at the municipal group level. This study further contributes theoretically by highlighting the importance of distinguishing between the adoption of financial and non-financial goals and targets, as the analysis reveals that financial and non-financial performance measures are adopted due to different rationales
Business · Economics · Accounting and Organizational Management · Environmental Science · Local Government Finance and Decentralization · Public Policy and Administration Research · Finance
Drivers of Performance Information Use
Understanding goal formation in strategic public management
Determinants of mandatory disclosure compliance in Swedish municipalities
Public sector consolidated financial statements
In control we trust!? Exploring formal control configurations for municipally owned corporations
The Effect of Rising Income Inequality on Taxation and Public Expenditures
What happens when municipalities run corporations? Empirical evidence from 290 Swedish municipalities
Performance of municipally owned corporations
Local Mixed Companies
Why do politicians perceive the same financial conditions differently
Dealing with multiple principals in at arm's length organizations
Strategic corporate governance factors for municipally owned companies
Consolidation in the public sector
Promoting the Utilization of Performance Measures in Public Organizations
Local governments and their arm’s length bodies
Governance challenges of different institutional logics and modes of organising
The impact of rational and political factors on performance measurement and its utilisation
Shifts in local governments’ corporatization intensity
| Citation velocity | historical |
|---|---|
| Highly cited | No |