The number of studies on non-financial reporting by public sector entities is steadily increasing. Public sector entities have begun to report non-financial data to meet the needs of various ...stakeholders. Previous research has shown that public entities have begun to disclose non-financial information through various non-financial reports, such as sustainability reports, popular reports, integrated reports, and reports on websites or social media. This paper examines the disclosure of non-financial information in the form of non-financial reports by Croatian public sector entities and the reasons for publishing or not publishing such reports. The research is based on a questionnaire survey of Croatian public sector executives conducted in 2022. The results show that Croatian public sector entities have started to publish non-financial reports and that publication in the future is viewed positively. However, most of those who indicated that their institution does not prepare non-financial reports and those who do not know if their institution prepares the report are unfamiliar with non-financial reporting and non-financial reporting standards. This paper adds to the limited literature on non-financial reporting in the public sector. It reveals that the most important reason for not publishing non-financial reports by public sector entities is the absence of a legal requirement for non-financial reporting.
Broj istraživanja o nefinancijskom izvještavanju u jedinicama javnog sektora je u porastu. Jedinice javnog sektora počele su objavljivati nefinancijske izvještaje kako bi zadovoljili potrebe za informacijama različitih skupina korisnika izvještaja. Prema prethodnom istraživanju, jedinice javnog sektora počele su pružati nefinancijske informacije putem različitih izvještaja kao što su: izvještaj o održivosti, popularni izvještaji, integrirani izvještaji kao i izvještavati putem web stranica ili kroz društvene medije. Ovim se radom istražuje objavljivanje nefinancijskih izvještaja jedinica javnog sektora Republike Hrvatske kao i razlozi koji stoje iza objavljivanja i neobjavljivanja nefinancijskih izvještaja. Istraživanje je provedeno 2022. godine putem anketnom upitnika upućenog javnom menadžmentu. Rezultati pokazuju da su jedinice javnog sektora Republike Hrvatske počele objavljivati nefinancijske izvještaje te da postoji pozitivan stav za objavljivanjem u budućnosti. Međutim, većina ispitanika koji su naveli da njihova institucija ne objavljuje nefinancijske izvještaje te onih koji ne znaju objavljuje li njihova institucija nefinancijske izvještaje, nisu upoznati sa nefinancijskim izvještavanjem i standardima nefinancijskog izvještavanja. Ovaj rad nadopunjuje ograničenu literaturu o nefinancijskom izvještavanju u javnom sektoru i otkriva da je najvažniji razlog neobjavljivanja nefinancijskih izvještaja od strane jedinica javnog sektora nepostojanje zakonske obveze nefinancijskog izvještavanja.
The purpose of this study is to identify data from the financial reportsof NGOs that influence donors’ willingness to donate. Using logistic regression,the authors attempt to identify the accounting ...measures associatedwith donations among the NGOs in our sample. The study included a sampleof 2,981 NGOs in Croatia that use a double-entry accounting system. Theresults show that several accounting variables have an impact on donations,including organizational size, volunteer staff, revenue concentration,government grants, business-like income, debt ratio and adequacy of equity.The study has some limitations. First, the sample covered mainly largeCroatian NGOs. Second, by design, the focus was on a broad sample whichincludes different types of organizations, so there is the possibility that theeffects of organizational and financial characteristics on donations are notequal across the sample of different types of organizations. This study helpsto fill the gap in the literature on this topic by examining the relationshipbetween information from NGOs financial reports and giving behaviour. This study also presents new empirical findings from a large sample studyfrom Croatia with a different institutional background. Research results providenew insights into how financial disclosure can meet the needs of donors.
Ovaj članak istražuje reakcije ulagača na objavu tromjesečne dobiti za kompanijesa Zagrebačke burze. Empirijsko istraživanje temeljeno na studiji događajai 409 opservacija potvrđuje da investitori reagiraju na objavu tromjesečne dobiti,dok Friedmanov test ukazuje da su reakcije najčešće na objave dobiti iz drugogtromjesečja (Q2). Pojava abnormalnih standardiziranih povrata na dan objave sugerirada hipoteza efikasnih tržišta u polujakom obliku ne vrijedi za hrvatsko tržištekapitala. Štoviše, postoje dokazi o postupnoj prilagodbi cijena dionica nakondana objave dobiti. Longitudinalna analiza za razdoblje 2010-2022. pokazala jeda su reakcije ulagača stabilne te da nema trenda rasta ili pada standardiziranihabnormalnih povrata. Ocijenjeni regresijski model otkrio je da nekoliko karakteristikakompanije utječe na informacijski sadržaj tromjesečne dobiti. Varijablaiznenađenja dobiti pozitivno utječe na standardizirane abnormalne povrate, dokvarijable veličina kompanije i objava gubitka negativno utječu na standardiziraneabnormalne povrate. Rezultati istraživanja potvrđuju regulatorima tržišta kapitalapraktične koristi od tromjesečnog financijskog izvještavanja, listanim kompanijamada mogu koristiti tromjesečne financijske izvještaje za smanjenje informacijskeasimetrije, a ulagačima da nakon objave tromjesečne dobiti postoji mogućnostostvarenja abnormalnih povrata. Ograničenje ovog istraživanja je relativno maliuzorak u usporedbi sa sličnim istraživanjima. Nalazi o sporoj prilagodbi cijenadionica nakon dana objave dobiti mogu biti dovedeni u pitanje zbog objave drugihcjenovno osjetljivih informacija. Neka buduća istraživanja mogla bi poboljšatinalaze korištenjem dodatnih nezavisnih varijabli, kao što su analize menadžmentai predviđanja analitičara, što bi moglo baciti novo svjetlo na sadržaj tromjesečnedobiti na Zagrebačkoj burzi.
Background: Non-financial reporting in the public sector is a relatively new topic. In the European Union, through Directive 2014/95/EU, non-financial reporting of public interest entities with over ...five hundred employees at the reporting date was introduced. Thus, member states are obliged to incorporate non-financial reporting into their national legislation. Purpose: The paper examines the assumption that more profitable companies will publish more information in non-financial reports to show their performance. Another assumption is that more indebted companies are producing more non-financial disclosures. Therefore, the purpose of this study was to determine whether there was a relationship between the information that is made public in public sector enterprises' (SOEs') non-financial reports and their financial performance. Methods/Approach: The paper analyses data from publicly available non-financial reports of SOEs for the period 2017-2019. The sample consists of 27 companies, including 10 Croatian SOEs, 10 Slovenian SOEs, and 7 Hungarian SOEs. Findings: Based on the conducted research we have drawn following findings; State ownership has a negative impact on the information provided in non-financial reports, while the quantity of information provided and the number of employees are positively correlated. Profitability has a negative impact on non-financial reporting, while a higher net profit will increase non-financial disclosures. Leverage has a positive impact on the IRD index in the sample of Croatia and Slovenia that was observed. Conclusion: Non-financial reporting has been implemented in accordance with Directive 2014/95/EU. In the examined sample of SOEs a correlation was found between non-financial reporting and the profitability and indebtedness of SOEs. Originality: Research in the paper has been made on previously unresearched examples – SOEs non-financial reporting in Croatia, Slovenia and Hungary.
This paper analyses local government practitioners' perceptions of the usefulness of accounting information for decision-making in jurisdictions with dual reporting (cash and accruals). The authors ...show that, in general, neither educational background (in economics or in other disciplines) nor the experience (length of time in the job) of public sector managers in Croatia and in the Republic of Srpska (Bosnia and Herzegovina) affected their perceptions of the usefulness of accounting information. The research provides new insights into the usefulness of mandatory reports and the availability of information for decision-making in dual reporting systems.
Purpose:
The requirements for information in the public sector are continuously changing and there is a need for accountants who are capable to respond to these challenges. Universities, i.e. higher ...education institutions (HEIs), are recognized as institutions that provide fundamental knowledge, and a discussion of education in the field of public sector accounting is required. The purpose of this paper is to present the opinions of public sector accountants and expectations of students regarding education in the field of public sector accounting at HEIs in Croatia.
Methodology:
A survey was conducted among accountants employed in public sector entities and among students of faculties of economics at public universities in Croatia. The results of the aforementioned survey are analysed in the SPSS software package using descriptive and inferential statistics.
Results:
Results showed that students as well as public accountants agree that formal education is not enough for the position of public accountant. Furthermore, students are not interested in the position of public accountant. Therefore, public universities should rethink modifying the structure and programs of courses related to public sector accounting.
Conclusion:
The results are an invitation to public policy creators to work on the attractiveness of the position of public sector accountant by offering better conditions. The authors of the paper therefore highlight the necessity for better cooperation between accountants and the academic community in order to improve education in the field of public sector accounting and meet the needs for professional and trained account-ants who are the future of the profession.
Higher education expenditures persistently rise due to various economic, demographic and socio-cultural reasons. This caused repeated calls for reforms of the economic model in the higher education ...sector and dramatically increased the importance of the economic evaluations in the last decades due to concerns for efficiency. The above academic challenges led us to pioneering an attempt to evaluate the capabilities of financial management tools for three Western Balkan countries, i.e. Bosnia and Herzegovina, Croatia and Slovenia. The precondition for successful reform processes is certainly a comprehensive and high-quality accounting information system that meets not only the requirements of external reporting but also the requirements of internal users, especially the management of HEIs. In that context, the main aim of this paper is to overview the legal and organizational accounting systems' characteristics focusing on external and internal reporting requirements, and study the level of development and usage of cost accounting at HEIs in selected countries. Therefore, our paper employs research methodology based on the survey conducted. The results show great differences in legal and organizational characteristics of accounting systems among the countries as well as in the development stages of cost accounting systems, which mainly focus on inconsistent overhead allocation as well as different accounting basis usage. The research results confirm poorly conceptualised and structured reporting of accounting information for management purposes, offering several applicable platforms for creation of performance management approaches and strategies in the public sector.
This paper emphasizes the economic importance of the civil society sector in the national socio-economic context. There is a systematic neglect of the economic and financial components of civil ...society organizations and non-profit sector in Croatia even though a significant volume of civil society organizations’ activities is funded from public sources and there is a high possibility of exploitation of their relatively privileged tax position. The purpose of this paper is to present research results of the funding sources, the financial potential and the elements of economic performance of citizens’ associations in the Republic of Croatia. The survey sample includes over 20,000 citizens’ associations which have submitted financial reports to the Registry of Non-profit Organizations in accordance with the statutory obligation. The research is based on aggregated data reported in the Balance Sheet and Performance Report for 2015 and 2016. The scientific contribution of the paper is reflected in the assessment of the financial performance and financial transparency of the activities of civil society organizations in the Republic of Croatia and their sustainability in comparison with Serbia and Slovenia.
Higher education institutions are going through a different reform processes that differ from country to country. However, the common challenge of higher education institutions is to assure the ...financial sustainability and only those institutions that have stable financial structure will be able to fulfil their missions and goals in conditions of limited financial resources. One of very important preconditions for assuring financial sustainability is a high quality reporting system, providing comprehensive and detailed information about all aspects of the activities, performed by an institution of higher education and, especially, its full costs. The objective of the paper is two-fold. On the one hand, its aim is to address reform processes regarding reporting systems at higher education institutions in selected countries; Bosnia and Herzegovina, Croatia and Slovenia, and on the other hand, to highlight most important obstacles for development of efficient internal reporting systems. The empirical research was conducted in 2016 and data collection was based on the survey method. The questionnaires were sent to all public higher
education institutions in Bosnia and Herzegovina, Croatia and Slovenia. The results of research have shown that, even though there is a positive perception regarding the need to improve existing internal reporting systems, there are significant differences in obstacles for development of efficient internal reporting systems in observed countries.
Higher education institutions are going through a different reform processes that differ from country to country. However, the common challenge of higher education institutions is to assure the ...financial sustainability and only those institutions that have stable financial structure will be able to fulfil their missions and goals in conditions of limited financial resources. One of very important preconditions for assuring financial sustainability is a high quality reporting system, providing comprehensive and detailed information about all aspects of the activities, performed by an institution of higher education and, especially, its full costs. The objective of the paper is two-fold. On the one hand, its aim is to address reform processes regarding reporting systems at higher education institutions in selected countries; Bosnia and Herzegovina, Croatia and Slovenia, and on the other hand, to highlight most important obstacles for development of efficient internal reporting systems. The empirical research was conducted in 2016 and data collection was based on the survey method. The questionnaires were sent to all public higher education institutions in Bosnia and Herzegovina, Croatia and Slovenia. The results of research have shown that, even though there is a positive perception regarding the need to improve existing internal reporting systems, there are significant differences in obstacles for development of efficient internal reporting systems in observed countries.
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