Roberta Fasiello

Exploring Performance Management in Italian Local Government: The Necessity of Outcome Measures and Citizen Participation:

The purpose of this article is to identify what internal and external factors increase the probability of local officials actually using performance data for decision making within Italian local government, responding to one of the basic questions of performance management theory. Based on a sample of local governments from the Apulia region, we used an ordinary least squares regression model to show that local officials are more likely to engage in performance data use when they rely on input, output, and outcome measures and when they increase the level of citizen participation. While the reliance on more advanced performance measures clearly builds on previous research, our study represents one of the few studies that demonstrates a statistically significant relationship between performance management and citizen participation in local government. We conclude from our findings that we cannot forget about basic performance measurement and external stakeholder involvement as scholars continue to push the boundaries of performance management theory.

A theoretical contribution to 21st Century problems in financial reporting

The Italian tradition known as ‘Economia Aziendale’ is longstanding and well known in Italy. It broadly spans the 20th Century, with its apotheosis appearing in the 1920s with Gino Zappa. It is not very well-known elsewhere. Its logical conclusions for financial reporting are not applied in practice in Italy, and indeed never have been. They are not applied in the (very different) field of IFRS and European Directive requirements either. Our research question is to investigate the proposition that they significantly should be so applied. Our key area of study, therefore, is the complex and multi-faceted problem of income measurement and asset valuation, valuation issues in short. In order to properly investigate these considerations, we present a thorough survey of the theoretical development and arguments of the EA tradition, showing its logicality and usefulness, and contrasting these effects with the present-day regulatory systems. This forms the major theoretical element of the paper. In summary, therefore, the paper could be characterised as an analytical presentation of major theoretical arguments, with significant application to the real world of today and tomorrow. The EA tradition is not new. But we demonstrate its current relevance, and expose it to an international audience.

Exploring the Relationship between Operational and Financial Indicators: The Case of Water and Sewer Utilities

ABSTRACT There is debate in the literature on whether or not general management principles are applicable to the study and practice of public administration. This research responds by exploring how local officials manage the performance of public services with private good characteristics, where general management principles could be embraced for service delivery. The relationship between operational and financial indicators is explored within the functional areas of water and sewer, with the hypothesis that operational outcomes impact financial outcomes similar to private enterprises. Because the findings do not support this hypothesis, the authors conclude that general management principles may not be applicable to all forms of administration given that public cannot be removed from the management of public services even with private good characteristics.