Finance Director Expertise and Local Government Financial Stability

• In Event: Government Financial Stability and Disclosures

Abstract

Although the public sector represents a substantial portion of the U.S. economy, little is known about public sector managers. I investigate if local government finance director quality is associated with local government financial stability, employing a two phase study due to limitations in data availability. Phase one utilizes a survey of local government finance officers to obtain data on finance director expertise and individual characteristics for analysis and development of a finance director quality measure. I find the survey instrument to be robust in providing a variety of measurable variables for further analysis and development of a finance director quality measure. In the second phase, the finance director quality measure is applied to a financial stability index based on established fiscal distress indicators to examine if public sector manager expertise, manager discretion, jurisdictional complexity, governance mechanisms, or individual managerial characteristics are associated with local government financial stability.

Author

• Casey Ann Camors, Texas Tech University