The use and non-use of the government financial report by Maltese Members of Parliament

Josette Caruana and Brady Farrugia

Accounting, Auditing & Accountability Journal, 2018, vol. 31, issue 4, 1124-1144

Abstract: Purpose - The purpose of this paper is to examine the use and non-use of the Government Financial Report by Maltese Members of Parliament (MPs). It refers to information overload theory to analyse the gap between financial reports and their relevance for decision making. Design/methodology/approach - A mix of qualitative (interviews) and quantitative (questionnaire) research tools are applied, with the Maltese MPs being the research participants. This method is acclaimed to be comprehensive, but this study highlights certain disadvantages when applied in the political arena. Findings - The characteristics of the information itself could be the main cause of information overload, resulting in the non-use of the financial report for decision making. Politicians refer to financial data for their decision making, but not to the data presented in the financial report. Irrespective of the politician’s professional background, the data in the financial report is perceived as incomplete and outdated. Practical implications - The cause of information overload and its effects are important considerations for preparers of financial information and accounting standard setters, if they wish that their production is relevant for decision makers. Originality/value - There is an increase in research concerning politicians’ use of budgetary and performance information, at local and regional levels of government. This study investigates exclusively the use of the financial report by politicians at central level, in a politically stable environment.

Keywords: Decision making; Financial information; Information overload; Governmental reporting; Qualitative characteristics (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:aaajpp:aaaj-12-2015-2350

DOI: 10.1108/AAAJ-12-2015-2350

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