Effects of the managerial capacity of managers on the financial condition of large Brazilian municipalities
DOI:
https://doi.org/10.11606/issn.1982-6486.rco.2023.207546Keywords:
Managerial Capacity, Public Manager, Financial ConditionAbstract
This study aimed to examine the influence of managers’ managerial capacity on the financial condition of large Brazilian municipalities. Based on the theoretical framework, it was hypothesized that the education level and experience of mayors, the education level of administration and finance directors, and the education level of public servants can positively influence the financial condition of local governments from the perspective of budget and cash solvency. The study covered the 100 largest Brazilian municipalities in terms of GDP, in the 2009-1019 period. To test the proposed hypotheses, the generalized least squares (GLS) regression technique was used. Results revealed that the managerial capacity of managers and employees has a positive influence on the financial condition of large Brazilian municipalities with regard to cash solvency, but it is not relevant for influencing budgetary solvency. The study’s results corroborate the assumptions of the human capital theory, serving as tools to support public finance management.
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