Open Conference Systems, ICQQMEAS2015

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Financial Effectiveness of Greek Municipalities. An Empirical Investigation
Christos L. Pallis, Petros L. Pallis

Last modified: 2015-09-24


Municipalities are autonomous economic and administrative entities, with common actions and responsibilities. On the other hand, all municipalities are quite different considering specific characteristics, such as geographic, demographic and economic. The aim of this research is to separate the entire sample of municipalities in Greece into categories, based on the effectiveness of financial management and financial performance into effective and ineffective ones. For the separation of the sample into groups, cluster analysis was preferred. For this reason, three variables were used: the lending capacity of the municipality, flexibility in making non-investment costs, and flexibility in investment spending. These three variables were considered to be the key dimensions of effectiveness in financial management and therefore their use, representatively describes the effectiveness or not of Greek municipalities. In this study, we investigated the views of Mayors in the two categories of Municipalities (effective and non effective financial management and financial performance) as regards: (a) the biggest problems faced by the citizens in their Municipality, and (b) the biggest personnel problems faced by their Municipality

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