An Experimental Investigation of Some Effects of Consolidating Municipal Financial Reports.
This paper describes the conduct and results of an empirical study of the differential impact of providing two competing municipal reporting formats: Fund-by-fund versus consolidated financial statements. The conflict between these two reporting formats was linked to the problems of data expansion and financial reporting for diversified entities. An experimental survey was conducted through the mail, using subjects chosen from membership lists of the Municipal Finance Officers Association. Subjects responded by providing an expected, high, and low interest rate estimate for each of the four cities whose financial reports they examined. The dependent variables of concern in the study were (1) the expected interest rates and (2) the interest rate range estimates (high-low). The statistical analysis of the subjects' responses showed that the kind of report presented to the participants (consolidated or fund-by-fund) had no significant impact on the dependent variables examined in the study at α =.05, but did significantly influence expected interest rates at the .10 level. Several implications of this study were offered as suggestions for further research. The limitations of this study were also discussed.
- DOI
- 10.2308/tar-4492532
- Volume
- 53 (2)
- Pages
- 402-414
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref