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The impact of Financial Information on Voting Behaviour
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Author(s): Isabel Brusca (University of Zaragoza, Spain), Margarita Labrador (University of Zaragoza, Spain)and Jorge Olmo (University of Zaragoza, Spain)
Copyright: 2020
Pages: 26
Source title:
Financial Determinants in Local Re-Election Rates: Emerging Research and Opportunities
Source Author(s)/Editor(s): Ana Maria Cunha (Polytechnic Institute of Cávado and Ave, Portugal), Augusta Ferreira (University of Aveiro, Portugal), Maria José Fernandes (Polytechnic Institute of Cávado and Ave, Portugal)and Patrícia Gomes (Polytechnic Institute of Cávado and Ave, Portugal)
DOI: 10.4018/978-1-5225-7820-8.ch001
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Abstract
In the public sector, citizens have been recognized as potential users of financial reporting elaborated by governments. A specific use of financial reporting by citizens is voting decisions, where they can approve or disapprove of the politicians' management. Political budget cycles literature contains many studies that evidence that politicians manage the budget in order to increase their possibilities of being reelected, but there is no consensus about the outcome. This chapter aims to study to what extent financial management influences electoral outcomes and if there is any evidence that the financial management of governments has an impact on election results. The study is focused on Spanish local governments and uses data from the elections of 2011 and 2015. The results indicate that governments with higher capital investments or fewer deficits have no advantages in the elections. However, citizens reward government policies with higher levels of social expenditures and punish higher fiscal pressure.
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