Business and Economic Horizons

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 5
Issue 2
Online publication date 2011-04-18
Title Developments in public sector financial management in Estonia
Author Juta Tikk, Arno Almann

Systems approach, contingency theory, modeling and interviewing are used to research whether the integration of the financial accounting and budget systems that are based on different accounting principles into a balanced overall system will increase the efficiency of financial management and will provide more ways of management in Estonian public organizations. The integration of the systems will create a semantically and organizationally interacting information system for a midterm period, which could be used at all managerial levels in all organizations in real time by developing the information technological infrastructure in Estonia. As feedback, control authorities impart information about the deviations between the objectives of the information and the attainments to the decision-makers, which will enable the decision-makers to make corrections and improve the quality of decisions. 

Bergmann, A., 2009. Public sector financial management, Financial Times, Prentice Hall
Chan, J., Xiao, X., 2009. “Financial management in public sector organizations,” In: Boivard, T., Löffler, E. (eds) Public Management and Governance, 2nd ed Routlege
Cook, S., Yanow, D., 1993. “Culture and organizational learning,” Journal of Management Inquiry, December, pp.400-10
Diamond, J., 2006. “Budget system reform in emerging economies: The challenges and the   reform agenda,” International Monetary Fund, WP/03/247  
Emmanuel, C., Otley, D., Merchant, K., 1990. Accounting for management control, Chapman&Hall, 2nd ed., London
Guthrie, J., Humphrey, C., Jones, L., Olson, O. (Eds.), 2005. International public financial management reform: Progress, contradictions, and challenges, Greenwich, Connecticut: Information Age Publishing 
Guthrie, J., Olson, O., Humphrey, C., 1999. “Debating developments in new public financial management: The limits of global theorising and some new ways forward,” Financial Accountability and Management, Vol.15 (3)&(4), pp.209-28
Hodge, H., M., Piccolo, R., 2005. “Funding source, board involvment techniques, and financial vulnerability in nonprofit organizations. A test of recourse dependence,” Nonprofit Management and Leadership, Vol.16, No.2, pp.171-90
Hughes, J., 2007. “A stepwise approach to transition from a cash, modified cash, or modified accrual basis of accounting to a full accrual basis for developing countries,” Public Fund Digest, VI(1), pp.53-62
Hussein, M., 1981. “The innovative process in financial accounting standard setting,” Accounting, Organization and Society, Vol.6, No.1, pp.27-37
Jarnagin, C., Slocum, J., 2007. “Creating corporate cultures through mythopoetic leadership,” Organizational Dynamics, Vol.36, No.3, pp.288-302
Kaplan, R, Cooper, R., 2002. Kulu ja tulemus. Kuidas integreeritud    kulusüsteemidega suurendada kasumlikkust ja tulemust, Fontese Kirjastus
Katz, D., Kahn, R., 1966. The social psychology of organizations, New York. Wiley
Kieso, D., Weygandt, J., 1998. Intermediate accounting,  9th ed., New York
Kraan, D., Wehner, J., Richter, K., 2008. “Budgeting in Estonia,” OECD Journal on  Budgeting, Vol.8, No.2, pp.1-40
Lawrence, P., Lorsch, J., 1967. Organization and environment, Irwin, Homewood
Lorents, P., 2001. Süsteemse käsitluse alused, EBS Print OÜ, Tallinn
Lüder, K., 1994. “The contingency model reconsidered: Experiences from Italy, Japan and Spain,” In: Buschor, E., Schedler, K. (Eds),  Perspectives on performance measurement and public sector accounting, Paul Haupt Publishers Berne, Stuttgart, Vienna, pp.1-16
Lüder, K., 2002. “Research in comparative governmental accounting over the last decade - Achievements and problems,” In: Montesinos, V. and Vela, J. (Eds.), Innovations in government accounting, Boston, MA: Kluwer Academic Publishers, pp.1-21
Mintzberg, H., 1983. Structure in fives:  Designing effective organizations, New Jersey: Prentice Hall
Mulas-Granados, C., Onrubia, J, Salinas-Jimenez, J., 2009. “Do budget institutions matter? Fiscal consolidation in the new EU member states,” Eastern European Economics, Vol.4 (1), pp.60-91. Quoted in: Raudla, R., 2010. “The evolution of budgetary institutions in Estonia: A path full of puzzles?” Governance: An International Journal of Policy, Administration and Institutions, Vol.23, No.3, July, pp.463-484
OECD Public Governance Reviews, 2011. Estonia: Towards a single government approach 
Otley, D., 1980. “The contingency theory of management accounting: Achievement and prognosis,” Accounting, Organization and Society, Vol.5, No.4, pp.413-28
Pfeffer, J., Salancik, G., 1978. The external control of organizations: A resource dependence perspective, New York, Harper&Row
Pollitt, C., Bouckaert, G., 2004. Public management reform: A comparative analysis, 2nd  ed., Oxford University Press
Raudla, R., 2010. “The evolution of budgetary institutions in Estonia: A path full of puzzles?” Governance: An International Journal of Policy, Administration and Institutions, Vol.23, No.3, July, pp.463-84
Rozenfeld, I., 1975. Süsteemanalüüs, Eesti Raamat, Tallinn
Schein, E., 1996. “Culture: The missing concept in organization studies,” Administrative Science Quarterly, Vol.41, pp.229-40
Schick, A., 2007. “Performance budgeting and accrual budgeting: Decision rules or analytic tools,” OECD Journal on Budgeting, Vol.7(2), pp.109-38
Zapal, J, Schneider, O., 2006. “What are their words worth? The political plans and economic pains of fiscal consolidations in the New EU member states,” Eastern European Economics, Vol.44(5), pp.6-37. Raudla, R., 2010. “The evolution of budgetary institutions in Estonia: A path full of puzzles?” Governance: An International Journal of Policy, Administration and Institutions, Vol.23, No.3, July, pp.463-84
Thompson, J., 1967. Organizations in action, New York: McGraw-Hill
Tikk, J., 2010. “Accounting changes in the public sector in Estonia,” Business: Theory and  Practice, Vol.11(1), pp.77-85
von Hagen, J., 2005. “Budgeting institutions and public spending,” In: Shah, A, (Ed.), Public sector governance and accountability series, Fiscal Management. Washington DC: The World Bank
von Hagen, J., 2006. “Political economy of fiscal institutions,” In: Weingast, B, Wittman, D. (Eds), Oxford Handbook of Political Economy, Oxford: Oxford University Press
Wildavsky, A., 1964. The politics of the budgetary process, Boston: Little, Brown and Company
Wilson, J., 1989. Bureaucracy: What governments do and why they do it, New York, Basic Books
Wynne, A., 2007. “Is the move to accrual based accounting a real priority for public sector accounting?” Public Fund Digest, Vol.VI(1), pp.25-38

Keywords Governmental accounting system, budgeting system, systems approach, modeling.
Pages 47-56
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Search in articles
Journal Published articles
BEH 591
Journal Hits
BEH 1217948
Journal Downloads
BEH 43378
Total users online -