Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289250 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 9 [Issue:] 1 [Article No.:] 2122162 [Year:] 2022 [Pages:] 1-20
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study aims to investigate the impact of accrual accounting adoption on Indonesian local governments. In particular, this study examines the differences of financial performance before and after the accrual adoption and the usefulness of accrual accounting information for public managers. Using mixed-method, data was collected from secondary sources and interviews. T Test for paired samples and Wilcoxon Signed Rank were employed to examine the statistical difference of Indonesian local government financial ratios before and after the adoption. Interviews were undertaken with local government managers and their consultants. To provide comprehensive understanding and discussion, this study adopts a theoretical pluralism using old institutional economics (OIE) and new institutional sociology (NIS) conjointly. The quantitative part demonstrated mixed results and lack of benefit of accrual accounting adoption in the Indonesian local governments. In the same vein, the qualitative part unveiled the failure of institutionalisation of new public management (NPM) values and principles that explained a marginal role of accrual accounting information in public managers decision-making process. The paper contributes to the continuing debate of the benefits of accrual accounting adoption for local governments.
Subjects: 
Indonesia
financial performance
institutional theory
Accrual accounting
local government
NPM
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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