Bridging the gap: A study of government suppliers' reporting practices

Purpose – This paper aims to identify the most significant governance provision in enhancing the financial information quality of UK listed firms. In addition, it investigates the influence of this governance provision in explaining stock returns of 20 UK industry portfolios. Design/methodology/approach – To identify the main governance provision in enhancing the accruals quality, the paper runs regressions of accruals quality variable on the total governance variable, on the governance provisions individually, and on the governance provisions taken together with and without integrating control variables. Next, Asset Pricing tests are employed to examine the capacity of the audit provision, as proved the most influential governance provision on accruals quality, to explain stock returns. The quantitative approach used in the paper enables to investigate the relationship between corporate governance, accruals quality, and stock returns. Findings – Results indicate that audit provision is the most important governance mechanism affecting accruals quality. In addition, this mechanism is comparable with the book-to-market factor in explaining the time-series variation in portfolios returns. Furthermore, the introduction of the Audit factor to Fama-French model reduces the significance of the size factor and the book-to-market factor in explaining stock returns. This suggests that size and the book-to-market factors contain information related to the audit provision. Research limitations/implications – The findings of the paper carry implications for investors as they do not need to equally weight all corporate governance provisions in their resource allocation decisions. The significant influence of audit provision on accruals quality needs to be taken into consideration when investment decisions are made. Audit factor is important in predicting future returns. It is also found to be as good as book-to-market factor in explaining portfolios returns. Also, the findings have many implications for regulatory bodies in their efforts to enhance financial information quality. Establishing roles for best governance in reducing information risk should focus, among other things, on the significant elements of corporate governance in improving accruals quality. The main limitation of the study is the restricted variation in the Audit governance factor which comes from the source of corporate governance data, i.e. CGQ. Firms in the sample do not exhibit diversified levels of Audit scores. Accordingly, when constructing audit risk factor it was found that firms could only be split into two portfolios according to their Audit scores instead of five. Originality/value – This study identifies audit provision as the most significant governance mechanism in enhancing the financial information quality of UK listed firms. In addition, a factor representing audit provision is constructed to investigate the influence of this provision on stock returns. To the authors' knowledge, this is the first study that examines the capacity of the audit provision to explain stock returns in an asset pricing framework.

Background:: Autism Spectrum Disorder (ASD) is a complex and heterogeneous neurodevelopmental disorder that is associated with functional impairments across an individual’s lifespan. The complexity and increasing global prevalence of ASD pose significant strains on healthcare systems. Early Intensive Behavioral Interventions (EIBI) are cost-effective evidence-based interventions that improve outcomes for individuals with ASD, especially when implemented in early childhood. Objectives:: This study reviews the disease burden of ASD and analyzes four potential financing models for EIBI in Dubai. Methods:: A rapid literature review was conducted to synthesize the disease burden of ASD and EIBI services in Dubai. Bardach’s eightfold model for policy analysis was used to analyze four policy options for EIBI in Dubai: (1) Government financing and provision of EIBI through specialized centers, (2) Government financing of EIBI through contracting private providers, (3) Mandating insurance coverage of EIBI for children with ASD, and, lastly, (4) A mixed model that includes both mandating insurance coverage for EIBI and government provision through non-profit organizations. Results:: EIBI services were available in Dubai but were associated with a substantial out-of-pocket (OOP) burden on families. Many young children with ASD were unable to access EIBI. Option (4) of using the mixed financing model of EIBI was optimal in the context of Dubai, based on evaluation criteria, including accessibility, cost-effectiveness, quality, and implementability, with minimal OOP burden on families. Conclusion:: To ease the burden on families with children suffering from ASD, the stakeholders, including the government of Dubai, should consider a mixed financial model to provide EIBI.

Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles

The choice between private and government provision of a productive public good like infrastructure (public capital) is examined in the context of an endogenously growing open economy. The accumulation of public capital need not require government provision, in contrast to the standard assumption in the literature. Even with an efficient government, the relative costs and benefits of government and private provision depend crucially on the economy's underlying structural conditions and borrowing constraints in international capital markets. Countries with limited substitution possibilities and large production externalities may benefit from governments encouraging private provision of public capital through targeted investment subsidies. On the other hand, countries with flexible substitution possibilities and relatively smaller externalities may benefit either from governments directly providing public capital, or from regulation of private providers. The transitional dynamics are also shown to depend on the underlying elasticity of substitution and the size of the production externality.

The choice between private and government provision of a productive public good like infrastructure (public capital) is examined in the context of an endogenously growing open economy. The accumulation of public capital need not require government provision, in contrast to the standard assumption in the literature. Even with an efficient government, the relative costs and benefits of government and private provision depend crucially on the economy's underlying structural conditions and borrowing constraints in international capital markets. Countries with limited substitution possibilities and large production externalities may benefit from governments encouraging private provision of public capital through targeted investment subsidies. By contrast, countries with flexible substitution possibilities and relatively smaller externalities may benefit either from governments directly providing public capital or from regulation of private providers. The transitional dynamics also are shown to depend on the underlying elasticity of substitution and the size of the production externality.

Some of the most basic questions about the organization and functioning of society involve issues raised by the existence of public goods. With respect to environmental public goods, how should funds used to support environmental improvement be collected and used? In particular, are collective, mandatory payments superior to voluntary, charitable payments due to the possibility of free riding? And to what degree should the government be involved in spending these funds: should the government directly fund environmental improvement projects or should the private sector be used to collect funds and determine funding priorities? This report explores these questions from the perspective of renewable energy: wind, geothermal, biomass, hydropower, and solar. In particular, this report analyzes the payment preferences of U.S. households through the implementation of a large-scale contingent valuation (CV) survey of willingness to pay (WTP) for renewable energy. Renewable energy can be supported through a mandatory ''tax'' on electric bills or through voluntary payments via green power marketing; the government may or may not be heavily involved in the collection and expenditure of such funds. The question of how households prefer to pay for renewable energy is therefore highly relevant. The primary objective of this study is to explore variations in stated WTP for renewable energy under the following four payment and provision contexts: (1) A mandatory increase in the electricity bills of all customers, the funds from which are collected and spent by the government on renewable energy projects. (2) A voluntary increase in the electricity bills of those customers who choose to pay, the funds from which are collected and spent by the government on renewable energy projects. (3) A voluntary increase in the electricity bills of those customers who choose to pay, the funds from which are collected and spent by electricity suppliers on renewable energy projects. (4) A mandatory increase in the electricity bills of all customers, the funds from which are collected and spent by electricity suppliers on renewable energy projects. These payment and provision scenarios are consistent with contemporary forms of support for renewable energy. The first scenario--mandatory payments and government provision--is consistent with a system-benefits charge policy, a policy that has been adopted in 15 U.S. states. The third scenario--voluntary payments to an electricity supplier--is consistent with competitive green power marketing. The fourth scenario--mandatory payments through electricity suppliers--is consistent with a renewables portfolio standard, a policy adopted in thirteen U.S. states as of mid 2003. The second scenario--voluntary payments and government provision--has only been used in a limited fashion in the United States. In addition to having contemporary policy relevance, these four contingent valuation scenarios allow one to distinguish differences in stated WTP based on: (1) the payment method--is WTP affected by whether payments are to be made collectively or voluntarily? and (2) the provision arrangement--does the manner in which a good is provided, in this case through the government or the private sector, affect stated WTP? A split-sample, dichotomous choice contingent valuation survey of 1,574 U.S. residents was developed and implemented to test the sensitivity of stated WTP to these variables at three different payment levels, or bid points. Three secondary objectives also influenced research design, and are discussed in this report. First, this study indirectly and tentatively evaluates the importance of ''participation expectations'' in contingent valuation surveys: specifically, are individuals who state a WTP for renewable energy more likely to think that others will also contribute? Such relationships are commonly discussed in the sociology, social psychology, and marketing literatures, and are also frequently referenced in the collective action literature, but have yet to be tested thoroughly in a contingent valuation context. Second, this report assesses the effects of socioeconomic, demographic, and attitudinal variables on willingness to pay for renewable energy through regression analysis. This analysis helps test the construct validity of the contingent valuation method, and informs our understanding of who is and is not willing to pay for renewable energy under different payment and provision contexts. Finally, through the implementation of a concurrent opinion survey with 202 respondents, this study compares the results of the CV surveys to a more direct approach of eliciting individuals' payment preferences. Responses to the opinion survey also allow a deeper exploration of other issues related to payment preferences.

The shortage of rural credit supply is a global practical problem, and also a concern of the world academia. The purpose of this study is to find evidence of the role of government provision in solving rural credit gap, and provide inspiration for countries to solve the shortage of rural credit supply. In the process, this study uses Goldsmith’s financial development theory as the theoretical guidance, and conducts an empirical analysis of the relationship between the financial interrelations ratio (FIR) and government provision in rural China from 2004 to 2019. The findings show that the rural credit gap with market development is not necessarily a credit market failure, and the government provision is not necessarily effective. Because the government provision is costly, wasteful, and less efficient than government intervention on stimulating demand.

In a 1991–2013 sample of bonds issued by US public firms, we find that the cost of debt (yield spread relative to comparable Treasuries) of suppliers to government agencies is contingent on the strategic importance of the supplier's industry. The yield spreads for strategically unimportant government suppliers are higher than for firms that are not government suppliers. If government contracts serve as tangible evidence of political connections, these higher yield spreads indicate that weaker corporate governance as a cost of political connections outweighs the benefits of said connections. For the subsample of government suppliers from strategically important industries, where the benefits of implicit bailout guarantees and revenue stability outweigh the corporate governance problems, the cost of debt is lower than for firms that are not government suppliers. The higher (lower) cost of debt for strategically unimportant (strategically important) suppliers is confined to contracting with the federal government. Our findings are robust to alternative variable and sample specifications, and to endogeneity concerns.

PurposeThe objectives of this paper are twofold. Firstly, to examine the importance of Malaysian public procurement objectives and secondly, to investigate the extent to which government suppliers adhere to public procurement principles.Design/methodology/approachFor achieving the objectives, a questionnaire survey was used. A total of 250 questionnaires were distributed to government suppliers involved in the government tendering process. In return, a total of 107 useable questionnaires were received, representing a response rate of 42.8%. Descriptive statistics of the means score, standard deviation and mean score ranking were used to analyse the data.FindingsThe results revealed that the most important public procurement objective is “to ensure a continuous supply of material and services to meet the government needs from the best and reliable sources”. On the other hand, the objectives “to expand the local industrial sector by means of transfer of technology and expertise to suit the nation's needs” and “to promote alternative and multiple sourcing through supplier development according to the aspirations and vision of the government” are perceived as not important by the government suppliers. The findings also discovered a moderate level of adherence to Malaysia's public procurement principles, which consist of public accountability, transparency, open and fair competition, fair dealing and value for money. Amongst these principles, the most adhered to is the open and fair competition principle and the least adhered to is the transparency principle.Originality/valueThis study is one of the few studies that assess the government suppliers' perceptions of public procurement in Malaysia. More importantly, this study may give some ideas to various parties concerning the areas in which improvement is required to ensure that equal importance is given to the public procurement objectives and better adherence to the public procurement principles in Malaysia.

Context:Although free and subsidized sanitary pads are provided by the government, proportion of adolescents availing this service remains low.Aims:The aim of the study was to determine the proportion of adolescent girls availing supply of sanitary napkins from a rural health training center (RHTC) in Puducherry; to assess the level of satisfaction with government supply; and to identify reasons for not accessing the same.Subjects and Methods:The mixed-method cross-sectional study done in July 2017 included 240 adolescent girls living in the RHTC service area of a tertiary care institute. Quantitative data were collected house to house with a pretested semi-structured questionnaire and qualitative data from a focused group discussion.Results:Sanitary pads were used by all of the participants who achieved menarche. Of them, 87 (40.2%) used pads purchased outside and 127 (58.8%) used both government supply and private purchase. Reasons for not availing government supply were insufficient quantity and low quality, lack of information about the government provision, and accessibility issues.Conclusions:Ensuring better quality and adequate quantity of sanitary pads supplied by the government along with increased awareness about the government provision can increase the utilization of the same by rural adolescents.

This chapter illustrates many of the economic concepts discussed in previous chapters. First, road infrastructure exhibits the classic supply-side economic characteristics, which are commonly discussed in transportation, public welfare, and regulatory economics. The cost structure of supply and strong natural monopoly tendencies indicate that markets will fail to provide road infrastructure efficiently and that provision by either the government or a regulated monopolist will be necessary. In the United States, government provision dominates as the solution to this problem. Second, road infrastructure exhibit the demand-side economic characteristics explored in Chapters 4 and 5. Road infrastructure is mixed infrastructure that generate massive spillovers for society by enabling users to engage in an incredibly wide variety of productive activities that yield private, public, and social goods. The case for commons management is quite strong. Not surprisingly (given government provisioning), road infrastructure is managed openly as commons. Government provisioning alleviates supply-side objections to commons management, but two major concerns remain: congestion and the generation of substantial negative externalities from environmental pollution. The chapter shows how to address these significant concerns in nondiscriminatory ways that sustain the road infrastructure commons.

Reprint to: Infrastructure provision and macroeconomic performance

An increasing feature of public services is the plurality of provision, but few studies examine how organizational arrangements affect stakeholder accountability for financial and performance issues. We examine stakeholder accountability for public services under different organizational forms by examining the workplace injuries systems in the UK and Canada (services provided through private insurance, direct government provision and stand-alone agency). The UK system is a largely uncoordinated arrangement of government provision through the Department of Work and Pensions (DWP) and compulsory private insurance. In Canada, the stand-alone Workers Compensation Boards (WCBs) administer a compensation system on a no fault basis and levy a fee from employers. The research study consisted of stakeholder interviews and documentary analysis in Canada and the UK. The primary stakeholders of the DWP industrial injuries benefit system; the commercial companies providing employers' liability schemes and the Canadian WCBs differ markedly. While all three arrangements have primary stakeholders that include (injured) workers and the government either in a regulatory or funding role, the importance of other stakeholders such as employers varies considerably. We found that stand-alone agencies can facilitate stakeholder accountability but 'voluntary' accountability can lead to lax targets. Government provision tends to rely on political accountability but with little consultation with interested parties. Commercial accountability neglects both the wider aspects of public accountability and the non-investor stakeholders. Stakeholder accountability needs to be planned and controlled under the different organizational forms. Where there is a range of provider, accountability for program elements should be established.

This paper studies the differences between private and government provision of infrastructure. Capital utilization decisions and their differential role in determining market prices for capital goods under the two regimes of infrastructure provision serve as a critical transmission mechanism for fiscal policy. A subsidy to private providers of infrastructure is preferable to direct government provision irrespective of how the subsidy or expenditure is financed. The case for private provision is much stronger in economies characterized by high levels of congestion. The choice between private and government provision also has a crucial effect on the design of optimal fiscal policy.

Infrastructure provision and macroeconomic performance