Český finanční a účetní časopis 2015(4):150-160 | DOI: 10.18267/j.cfuc.464

Construction of Municipalities´ Financial Health Indicator

Michal Svoboda
Ing. Michal Svoboda, Ph.D. - odborný asistent; Katedra finančního účetnictví a auditingu, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <michal.svoboda@vse.cz>.

The aim of this article is to find a multicriterial indicator of financial health of municipalities. Such an indicator should meet the need for a robustness and complexity to cover all the significant areas of activities of municipalities. It should be also understandable for key users of the information on financial situation of a municipality - for its citizens. This concept of its construction has been made using a literature search method in this field since 1960s and synthesis of its findings into 6 basic dimensions of such an indicator. Each of this 6 dimensions should allow a drill-down approach to get 2 - 3 partial aspects of that dimension. Also these should be evaluated separately.

Keywords: Financial Health; Public Sector; Municipalities; Public Sector Accounting; Financial Health Indicator.
JEL classification: M41, M42, M48

Published: December 1, 2015  Show citation

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Svoboda, M. (2015). Construction of Municipalities´ Financial Health Indicator. Czech Financial and Accounting Journal, 2015(4), 150-160. doi: 10.18267/j.cfuc.464
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