EconPapers    
Economics at your fingertips  
 

A Factor Analytic Assessment of Financial Sustainability: The Case of New South Wales Local Government

Joseph Drew and Brian Dollery ()

Australian Accounting Review, 2016, vol. 26, issue 2, 132-140

Abstract: type="main"> Financial sustainability in local government remains a pressing problem which has seen a host of public policy interventions, including compulsory consolidation and performance monitoring through financial sustainability ratios. In September 2014, the New South Wales (NSW) Government announced a reform program centred on increasing scale in local government to make councils ‘fit for the future’. We apply factor analysis to the financial ratios informing the NSW Government's reform initiative to identify the underlying factors for observed financial performance data. We find evidence indicating that three independent underlying factors account for the adopted measures of financial sustainability. The public policy implication arising from this study suggests that the reforms imposed by the NSW Government on NSW municipalities may only meet with limited successa.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1111/auar.12092 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ausact:v:26:y:2016:i:2:p:132-140

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1035-6908

Access Statistics for this article

Australian Accounting Review is currently edited by Linda M. English

More articles in Australian Accounting Review from CPA Australia
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-11-06
Handle: RePEc:bla:ausact:v:26:y:2016:i:2:p:132-140