Testing the Reliability of Financial Sustainability. The Case of Spanish Local Governments

Pina, V. (Universidad de Zaragoza) ; Bachiller, P. (Universidad de Zaragoza) ; Ripoll, L.

Resumen: Local Governments (LGs) have strengthened the financial control as a consequence of mandatory requirements to ensure financial sustainability in their management. The aim of this study is to determine whether financial indicators about financial conditions defined in Spanish regulation are backed by worldwide generally accepted financial benchmarking indicators. For this purpose, we analyze the relationship between Spanish indicators of financial sustainability based on European Union (EU) regulations and Financial Trends Monitoring System Indicators (FTMS) of the International City/County Management Association (ICMA). For this purpose, two methodologies are applied: discriminant analysis and logistic regression, where the dependent variables are each of the Spanish financial indicators and the independent variables are ICMA indicators. The evidence supports that variables that are related to the control of expenditures, debt and the revenues show a greater explanatory power of financial sustainability, being the most important elements which offer relevant information about the financial sustainability measurement of LGs.

Idioma: Inglés

DOI: 10.3390/su12176880

Año: 2020

Publicado en: Sustainability (Switzerland) 12, 17 (2020), 6880 [20 pp]
ISSN: 2071-1050

Factor impacto JCR: 3.251 (2020)

Categ. JCR: ENVIRONMENTAL SCIENCES rank: 124 / 273 = 0.454 (2020) - Q2 - T2
Categ. JCR: ENVIRONMENTAL STUDIES rank: 60 / 125 = 0.48 (2020) - Q2 - T2
Categ. JCR: GREEN & SUSTAINABLE SCIENCE & TECHNOLOGY rank: 30 / 44 = 0.682 (2020) - Q3 - T3
Categ. JCR: GREEN & SUSTAINABLE SCIENCE & TECHNOLOGY rank: 6 / 9 = 0.667 (2020) - Q3 - T3

Factor impacto SCIMAGO: 0.611 - Energy Engineering and Power Technology (Q1) - Environmental Science (miscellaneous) (Q1) - Renewable Energy, Sustainability and the Environment (Q1) - Management, Monitoring, Policy and Law (Q1) - Geography, Planning and Development (Q1)

Financiación: info:eu-repo/grantAgreement/ES/DGA/S56-17R
Financiación: info:eu-repo/grantAgreement/ES/MINECO-FEDER/PID2019-106857GB-I00
Financiación: info:eu-repo/grantAgreement/ES/UZ/JIUZ-2018-SOC-01
Financiación: info:eu-repo/grantAgreement/ES/UZ/UZ2019-SOC-05

Tipo y forma: Article (Published version)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)