Public value of online financial transparency

Abstract

Purpose The purpose of this paper is to apply Moore’s public value model into the context of e-government research by examining online financial transparency as both an organizational goal and as a driving force for financial sustainability and public officials’ corruption. The empirical context comprises the state governments in the USA. Design/methodology/approach Structural equation modeling is used to examine the relationship between specific contextual factors of the authorizing environment, financial sustainability, public official corruption and online budget transparency. Findings The results show that contextual factors like population explain online financial transparency, while financial sustainability and corruption had moderating and negative effects. Practical implications Governments that struggle with issues of financial sustainability and corruption will rely more on online financial transparency. Transparency increases detection of public corruption. Originality/value The effects of financial transparency and financial sustainability on corruption have been studied separately. This study fills the gap of understanding the effects of both on corruption as one phenomenon.