Determinants of mandatory disclosure compliance in Swedish municipalities

Bibliographic Data

ID20201602
AuthorsPierre Donatella (0000-0002-8377-7805, University of Gothenburg, corresponding author)
Year2020
Volume32
Issue2
Pages247-265
Publication date2020-06-15
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Public Budgeting Accounting & Financial Management (JOURNAL)
Journal identifiersISSN: 1096-3367 • E-ISSN: 1945-1814
PublisherEmerald (PUBLISHER)
DOI10.1108/jpbafm-03-2019-0048
OpenAlexW3014801457
LanguageEN
Citations received5
References cited35

Purpose The purpose of this article is to examine whether, and if so, to what extent, noncoercive isomorphism determines mandatory disclosure compliance at a later stage of an accounting reform. Design/methodology/approach The analysis of compliance is based on data from 289 Swedish municipalities for 2016, which is nearly two decades after the initial legal reform in which mandatory requirements were imposed by the Swedish government in an effort to harmonize financial reporting practice. Following the standard approach in the literature, an unweighted compliance index was used as dependent variable. Proxies for municipal accounting networks and involvement in professional government accounting associations were used to explain individual municipalities' levels of compliance. Findings Differences in individual municipalities' levels of compliance were strongly related to the financial reporting practice of other municipalities in their accounting network. These results suggest that normative and mimetic isomorphic pressure stemming from these local networks, where accounting departments continually meet and share experiences, is a very potent force. In contrast, isomorphic pressure stemming from involvement in activities offered by professional government accounting associations is generally not a potent force at this stage. Practical implications In settings where municipal accounting networks exist, it may be effective to stimulate de facto harmonization by directing information, education and other efforts toward the professional environment in which these networks operate. Originality/value Unlike prior literature, the data in this study are from a later stage of a public sector accounting reform

Accounting information system · Accrual · Business · Financial accounting · Fund accounting · Governmental accounting · Harmonization · Normative · Originality · Political science · Public relations · Accounting and Organizational Management · Auditing, Earnings Management, Governance · Law · Psychology · Public Policy and Administration Research · Accounting

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