Maintaining maintenance: The real effects of financial reporting for infrastructure

IF 3.2 3区 管理学 Q1 BUSINESS, FINANCE
Ryan P. McDonough, Claire J. Yan
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引用次数: 0

Abstract

We use the adoption of General Accounting Standards Board Statement No. 34 (GASB 34) to examine whether disclosing information in states' financial reports influences their investment decisions. GASB 34 requires governments to report on general infrastructure assets and permits either the standard depreciation approach or the modified approach. The modified approach requires additional disclosures, a step which we argue promotes greater transparency about a government's infrastructure and can potentially facilitate infrastructure investment decisions. We find a robust positive association between the modified approach and investment in infrastructure maintenance. Additional evidence demonstrates a more pronounced effect when external monitoring is likely higher and government officials are likely better informed as a result of the increased disclosure. We further find that states using the modified approach are less likely to cut or divert funds intended for infrastructure maintenance. Our study suggests that disclosing information in governments' financial reports can have real effects, such as mitigating underinvestment in infrastructure maintenance, which governments often defer to future periods in violation of the interperiod equity principle and to the detriment of society.

Abstract Image

维护保养:基础设施财务报告的实际效果
我们利用《美国通用会计准则委员会第 34 号公告》(GASB 34)的采用情况来研究在各州财务报告中披露信息是否会影响其投资决策。GASB 34 要求政府报告一般基础设施资产的情况,并允许采用标准折旧法或修正法。修改后的方法要求额外的信息披露,我们认为这一步骤可以提高政府基础设施的透明度,并有可能促进基础设施投资决策。我们发现,修改后的方法与基础设施维护投资之间存在稳健的正相关关系。更多的证据表明,当外部监督可能更高、政府官员可能因增加信息披露而获得更多信息时,效果会更明显。我们还发现,采用修改后方法的国家不太可能削减或挪用用于基础设施维护的资金。我们的研究表明,在政府财务报告中披露信息可以产生实际效果,比如缓解基础设施维护投资不足的问题,因为政府通常会将基础设施维护投资推迟到未来时期,这违反了跨期公平原则,对社会造成了损害。
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来源期刊
CiteScore
6.20
自引率
11.10%
发文量
97
期刊介绍: Contemporary Accounting Research (CAR) is the premiere research journal of the Canadian Academic Accounting Association, which publishes leading- edge research that contributes to our understanding of all aspects of accounting"s role within organizations, markets or society. Canadian based, increasingly global in scope, CAR seeks to reflect the geographical and intellectual diversity in accounting research. To accomplish this, CAR will continue to publish in its traditional areas of excellence, while seeking to more fully represent other research streams in its pages, so as to continue and expand its tradition of excellence.
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