Management mechanisms, deterrence measures and public finance regulatory compliance in Uganda
Loading...
Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Public Budgeting, Accounting & Financial Management
Abstract
Despite the advancement of the assumptions of agency and institutional theories whereby
monitoring structures and controls form the basis of management, inadequate public finance regulatory
compliance among public entities has continued to be a challenge. The purpose of this paper is to examine
how to break out of the apparent cycle of failures to comply with public finance regulations.
Design/methodology/approach – A cross-sectional study that integrates two approaches (cooperative and
coercive models) drawing from the view that in central government agencies, there may be stewards and also
agents motivated by self-interest, suggesting that the most promising framework is that which renders the
traditional ways of achieving regulatory compliance to be supplemented with the stewardship model. Thus,
the authors focus on four variables: management mechanisms, ethical climate, deterrence measures and public
finance regulatory compliance all drawn from agency, institutional and stewardship theories. The authors collect
data from 67 central government agencies in Uganda using a structured questionnaire.
Findings – The authors find that management mechanisms dimensions of leadership support and
organisational commitment significantly associate with public finance regulatory compliance and so too are
deterrence measures particularly oversight organs, penalties and procedural justices.
Research limitations/implications – Public finance regulatory compliance can be improved through
management mechanisms and deterrence measures.
Originality/value – The study generates empirical evidence on the applicability of stewardship theory in
the management of public entities for regulatory compliance
Description
Keywords
Public finance, Ethics, Deterrence measures, Management mechanisms
Citation
Nkundabanyanga, S. K., Nakyeyune, G. K., & Muhwezi, M. (2019). Management mechanisms, deterrence measures and public finance regulatory compliance in Uganda. Journal of Public Budgeting, Accounting & Financial Management. DOI 10.1108/JPBAFM-02-2018-0008