Measuring Financial Condition: A Study of U.S. States

By Xiaohu Wang, L. Dennis, Y. Tu. 2007

306 citations recorded by the source corpus.

This study tests a measure of financial condition using government-wide information as required under the new financial reporting model set forth in GASB Statement No. 34. The measure consists of four financial condition dimensions in cash, budget, long-run and service-level solvencies, and 11 financial condition indicators. Results show that the measure is relatively reliable and valid and that government-wide information reported under the requirements of GASB Statement No. 34 provides a useful reporting framework to evaluate financial condition of a government. Additionally, financial condition among states varies greatly and there is much room for improvement.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/ebf5ab196d7383032fab8d07da919d49646a8c96

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In Economics and Econometrics

1. Roberto Cabaleiro
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3. A. Vaamonde

Citations in the corpus

• Developing a Model to Measure Financial Condition in Local Government (2009, unknown): “Groves et al. (2003), GASB (1999, 2004), Hendrick (2004), and Wang et al. (2007) have sought to define and measure the concept of financial condition, and others, such as Brown (1993), Honadle and Lloyd-Jones (1998), and Kloha et al. (2005a, 2005b), have aimed to draw up indicators of a financial…”
• Developing a Method to Assessing the Municipal Financial Health (2013, methodology): “Wang et al. (2007) used the standardized values of indicators to obtain an aggregate index calculated by the arithmetic mean.”