Internet Financial Reporting in Local Governments

Abstract

The aim of this transnational comparative research is to analyze if the practice of disclosure of financial information over the Internet by local governments of MERCOSUR countries has been taken into account to increase the transparency of government. To achieve this objective, it was evaluated, for a sample of 374 local governments, the adoption rate and the extent of the practice of disclosure and it was explored, through of interviews, any reasons related to the involvement of local politicians with this practice. The results indicate a limited number of local governments that adopt this practice of disclosure in MERCOSUR, due to the lack of political will, of human resources, and of demand from citizens due to the almost nonexistent adoption of this disclosure practice in Argentina, Uruguay, and Venezuela. Although Paraguayan data have improved substantially, the analysis of the extent of the practice of IFR to ensure comparability with the first study is restricted to local governments in Brazil.