Eriotis, Nikolaos and Stamatiadis, Filippos and Vasiliou, Dimitrios (2011): Assessing Accrual Accounting Reform in Greek Public Hospitals: An Empirical Investigation. Published in: International Journal of Economic Sciences and Applied Research , Vol. 4, No. 1 (10. March 2011): pp. 153-184.
Download (461kB) | Preview
During the last decades, several countries worldwide have introduced financial management reforms, as an important part of the New Public Management (NPM) initiative at one or more levels of government sector, by either replacing or transforming their traditional budgetary cash accounting systems towards a business-like accrual accounting concept. Following the example of this upcoming managerial trend, the Greek government introduced in 2003 the accrual basis accounting into public hospitals, as the hospital sector is one of the areas where NPM reforms have been introduced in search of higher efficiency, effectiveness and economy in service production. The purpose of this paper is twofold. The first goal is to provide an overview of the government sector reform initiatives in Greece and to present empirical evidence regarding the adoption level of the accrual basis accounting standards in the Greek public Health sector. The second goal of the research is to investigate the impact of a range of potentially contingent factors on hospitals compliance with the accrual financial and cost accounting reform. The present analysis is based on the results of an empirical survey that took place during 2009. For the purposes of this survey, a structured questionnaire was prepared and sent to the Chief Financial Officers (CFOs) of 132 Greek public hospitals. In particular, a linear regression model analysis was used to examine the cross-sectional differences on a number of explanatory and implementation factors of the accounting reform adoption level. The empirical evidence reveals that the level of accrual and especially cost accounting adoption in Greek public hospitals is realized only to a limited extent. In particular, results show that the level of reform adoption is positively related to IT quality, reform related training, education level of accounting staff, and professional consultants’ support. However, no significant relationship was found between the level of reform adoption and hospital size, reform implementation cost, CEO educational background, experience effect, and absence of management-physicians conflict relationship. The main contribution of this study is the empirical evidence it provides on the approaches and processes used by the Government of Greece to implement accrual financial and cost accounting systems in the Greek National Health System (GNHS) and the role certain human, organizational and situational factors played in such implementations for enhancing researchers’ and managers’ understanding of major implementation processes and challenges as well as helping them refine models of effective implementation process and improve systems and processes on similar future projects
|Item Type:||MPRA Paper|
|Original Title:||Assessing Accrual Accounting Reform in Greek Public Hospitals: An Empirical Investigation|
|English Title:||Assessing Accrual Accounting Reform in Greek Public Hospitals: An Empirical Investigation|
|Keywords:||Accrual Accounting, Public Sector Accounting, Compliance, Public Hospitals, contingency factors|
|Subjects:||M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M41 - Accounting|
|Depositing User:||Filippos Stamatiadis|
|Date Deposited:||24. Apr 2011 04:55|
|Last Modified:||23. Mar 2015 10:56|
Abernethy M., Vagnoni E., 2004, ‘Power organization design and managerial behaviour’, Accounting, Organizations and Society, 29, pp. 207-225. Al-Omiri, M., and Drury, C., 2007, ‘A survey of factors influencing the choice of product costing systems in UK organisations’, Management Accounting Research, pp. 399-424. Arnaboldi, M., Lapsley, I., 2003, ‘Activity Based Costing, and the transformation of Local Government’, Public Management Review, 5, 3, pp. 345-375. Ballas, A. and Tsoukas, H., 2004, ‘Accounting for the Lack of Accounting: The Case of the Greek National Health System’, Human Relations, 57, 6, pp. 661-690. Bjornenak, T., 1997, ‘Diffusion and accounting: the case of ABC in Norway’, Management Accounting Research, 8, 3, pp. 3-14. Brusca, Alijarde, I., 1997, ‘The Usefulness of Financial Reporting in Spanish Local Governments’, Financial Accountability & Management, 13, 1, pp. 17–34. Burns, J. and Scapens, R.W., 2000, ‘Conceptualizing management accounting change: an institutional framework’, Management Accounting Research, 11, 1, pp. 3-25. Canby IV, J., 1995, ‘Applying activity-based costing to healthcare settings’, Healthcare Financial Management, 49, 2, pp. 50-55. Cardinaels. E., Roodhooft. F. and Van Herck., G., 2004, ‘Drivers of cost system development in hospitals: results of a survey’, Health Policy, 69, pp. 239-252. Carlin, T. and Guthrie, J., 2003, ‘Accrual Output Based Budgeting Systems in Australia: The Rhetoric-reality Gap’, Public Management Review, 5, 2, pp. 145-62. Cavalluzo, K., Ittner, C., 2004, ‘Implementing performance measurement innovations: evidence from government’, Accounting, Organizations and Society, 29, pp. 243- 267 Chan, J., 2003, ‘Government accounting: an assessment of theory, purposes and standards’, Public Money & Management, 23, 1, pp. 13-20. Cheng, R.H., 1992, ‘An empirical analysis of theories on factors influencing State government accounting disclosure’, Journal of Accountancy and Public Policy, 11, 1, pp. 1-42. Christiaens, J., 1999, ‘Financial Accounting Reform in Flemish Municipalities: An Empirical Investigation’, Financial Accountability & Management, 15, 1, pp. 21- 40. Christiaens, J., 2001, ‘Converging New Public Management Reforms and Diverging Accounting Practices in Flemish Local Governments’, Financial Accountability & Management, 17, 2, pp. 153-70. Christiaens, J. and E. de Wielemaker, 2003, ‘Financial Accounting Reform in Flemish Universities: An Empirical Study of the Implementation’, Financial Accountability & Management, 19, 2, pp. 185-204. Christiaens, J. and Vanhee, C., 2001, Innovations in governmental accounting systems: the concept of a ‘mega general ledger’ in Belgian provinces, Research working paper Ugent, nr. 01/113, 27. Christiaens, J. and Vanpeteghem, V., 2003, ‘Governmental Accounting Reform: Evolution of the Implementation in Flemish Municipalities’, Financial Accountability & Management, 23, 4, pp. 375-399. Christiaens, J. and Rommel, J., 2008, ‘Accrual Accounting Reforms: Only in businesslike (parts of) governments’, Financial Accountability & Management, 24, 1, pp. 59-75. Coombs, R.W., 1987, ‘Accounting for the control of Doctors: Management Information Systems in hospitals’, Accounting, Organizations and Society, 12, 4, pp. 389-404. Cohen, S., Kaimenaki E. and Zorgios, Y., 2007, ‘Assessing IT as a Key Success Factor for Accrual Accounting Implementation in Greek Municipalities’, Financial Accountability and Management, 23, 1, pp. 91-111. Cohen, S., Kaimenaki E. and Zorgios, Y., 2007, ‘How Different are Accrual Accounting Financial Measures Compared to Cash Accounting ones? Evidence from Greek Municipalities’, 6th Annual Conference of the Hellenic Accounting and Finance Association, Patra, December 14-15. Cohen, S., Kaimenaki, E., Zorgios, Y. and Kaimenakis, N., 2007, ‘An Empirical Investigation of Greek Municipalities’ Accounting Practices’, 6th Annual Conference of the Hellenic Accounting and Finance Association, Patra, December 14-15. Cohen, S., Kaimenaki E. and Zorgios, Y., 2007, ‘Identifying the moderator factors of financial performance in Greek Municipalities’, 30th European Accounting Association Annual Congress, Lisbon, April 25-27. Coy, D., Tower, G. and Dixon, K., 1994, ‘Quantifying the quality of tertiary education annual reports’, Accounting and Finance, 33, 2, pp. 121-130. Comerford, S. and Abernathy, M., 1999, ‘Budgeting and management of role conflict in hospitals’, Behavioural Research in Accounting, 11, pp. 93-110. Economou, C. and Giorno, C., 2009, ‘Improving the performance of the public health care system in Greece’, OECD, Economics department working paper no. 722. Emsley, D., Nevicky, B. and Harisson, G., 2006, ‘Effect of cognitive style and professional development on the initiation of radical and non-radical management accounting innovations’, Accounting and Finance, 46, 2, pp. 243-264. Evans, M., 1995, Resource Accounting and Budgeting in Government: The Policy Framework, Public Finance Foundation, London. Evans, J.H. and Patton, J.M., 1983, ‘An Economic Analysis of Participation in the Municipal Finance Officers Association Certificate of Conformance Program’, Journal of Accounting and Economics, 5, 2, pp. 151-175. Finkelstein, S. and Hambrick, D. C., 1996, ‘Strategic leadership: Top Executives and their effects on Organizations’, St. Paul MN: West. Guthrie, J., 1998, ‘Application of Accrual Accounting in the Australian Public Sector – Rhetoric or Reality?’, Financial Accountability & Management, 14, 1, pp. 1–19. Giroux, G., 1989, ‘Political interests and governmental accounting disclosure’, Journal of Accountancy and Public Policy, 8, 3, pp. 199-217. Hepworth, N., 2003, ‘Preconditions for Successful Implementation of Accrual Accounting in Central Government’, Public Money and Management, 23, 1, pp. 37-43. Hill, N., 2000, Adoption of costing systems in US hospitals: An event history analysis 1980-1990. Journal of Accounting and Public Policy, 19, pp. 41-71. Hodges, R. and Mellet, H., 2003, ‘Reporting public sector financial results’, Public Management Review, 5, 1, pp. 99-113. Hood, C., 1995, ‘The New Public Management in the 1980s: Variations on the Theme’, Accounting Organizations and Society, 20, 2 & 3, pp. 93–109. Ingram, R.W., 1984, ‘Economic incentives and the choice of State Government Accounting Practices’, Journal of Accounting Research, 22, 1, pp. 126-144. International Federation of Accountants (IFAC), 2002, Financial reporting by national governments, Public Sector Committee, Study 1, New-York, March 2002. International Federation of Accountants (IFAC), 2000, Government Financial Reporting: Accounting Issues and Pratices, Public Sector Committee, Study 3, New-York, April 2000. Jones, R., 1995, Accounts of Government of the U.K., pp. 25-44, International Research in Public Sector Accounting, Reporting and Auditing, Montesinos, V., Vela, J.M. (Ed.), Madrid. Jones, R. and Pendlebury, M., 1991, ‘The published accounts of local authorities, revisited’, Financial Accountability and Management, 7, 1, pp. 15-33.