Is there a ‘gaap gap’? a politico-economic model of municipal accounting policy

Bibliographic Data

ID20201730
AuthorsDeborah A Carroll (0000-0002-3202-7019, University of Georgia), Justin Marlowe (0000-0003-4941-0775, University of Washington)
Year2009
Volume21
Issue4
Pages501-523
Publication date2009-03-01
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-21-04-2009-b001
OpenAlexW2739520585
LanguageEN
Citations received5
References cited13

Positive accounting theory suggests jurisdictions will meet their stakeholders’ financial information needs at the lowest possible cost, and current accounting policy will change if it does not accomplish that objective. This paper examines the breadth of stakeholders who are associated with accounting policy. We use multivariate methods to determine which among a group of potential users including taxpayers, interest groups, local government managers, the municipal credit market, and other governmental entities are correlated with accounting policy among municipal governments in Illinois. The results suggest one particular stakeholder - the municipal credit market - is an important determinant of the use of Generally Accepted Accounting Principles (GAAP). The analysis shows that professionalism, history, and administrative capacity are also associated with a municipality’s accounting policy

Accounting information system · Accounting standard · Business · Cost accounting · Economics · Financial accounting · Fund accounting · Governmental accounting · Management accounting · Mark-to-market accounting · Positive accounting · Stakeholder · Fiscal Policies and Political Economy · Local Government Finance and Decentralization · Public Policy and Administration Research · Accounting

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