The influence of the socioeconomic and politico-administrative environment on the extent of compliance with IPSAS in developing countries
Journal of Accounting in Emerging Economies
ISSN: 2042-1168
Article publication date: 5 April 2023
Issue publication date: 22 March 2024
Abstract
Purpose
This paper investigates to what extent public sector entities (PSEs) in developing countries (DCs) are compliant with IPSAS and examines the impact of the socioeconomic and politico-administrative environment on this compliance during the period 2015–2018.
Design/methodology/approach
This research develops a self-constructed checklist consisting of 116 disclosure items from five accrual-based IPSAS (IPSASs, 1, 2, 3, 14 and 24) and applies panel regressions for a sample of 500 entity-year observations of 125 PSEs.
Findings
The study results show a high level of disparity in the degree of compliance with IPSAS amongst DCs' governments, with an overall average level of 61%. They reveal that compliance with IPSAS is positively influenced by the level of citizen wealth, government political culture (degree of government openness) and the quality of public administration, whereas jurisdiction size, government financial condition and political competition are non-significant factors.
Practical implications
This research provides researchers and practitioners with a comprehensive framework for understanding the extent of New Public Management reforms in DCs with a focus on International Public Sector Accounting Standards implementation. It might assist policymakers in their accounting strategies and might be a signal for DCs with low compliance to tap lessons from governments with successful experience of IPSAS adoption.
Originality/value
Focusing on DCs' context, this paper brings new insights into the analysis of socioeconomic and politico-administrative incentives for government compliance with IPSAS. It is the first to investigate the impact of citizen wealth and political competition on IPSAS disclosures.
Keywords
Citation
Mnif, Y. and Gafsi, Y. (2024), "The influence of the socioeconomic and politico-administrative environment on the extent of compliance with IPSAS in developing countries", Journal of Accounting in Emerging Economies, Vol. 14 No. 2, pp. 273-299. https://doi.org/10.1108/JAEE-02-2022-0044
Publisher
:Emerald Publishing Limited
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