Financial Performance Management in Local Governments: Example of Istanbul and Kocaeli Metropolitan Municipalities

Year 2023, Volume: 18 Issue: 1, 289 - 313, 01.04.2023

Abdullah Kılıçarslan , Alper Özmen

https://doi.org/10.17153/oguiibf.1231749

Cited By: 1

Abstract

In this study, the financial performance of local governments was evaluated through the example of the metropolitan municipality. Criteria were weighted by the Normalized Maximum Values method. Alternatives were ranked by the Bulut Index method, TOPSIS method and the ARAS methods. The ranking results of the related methods have been converted to integrated with the Copeland method. The relationships between the financial performance ranking results were analyzed with Spearman Rho and the results were evaluated. The Copeland integrated ranking results show that the highest performance levels for the metropolitan municipalities of Istanbul and Kocaeli are in 2020 and 2021, while the lowest are in 2011 and 2012. Study results show that rankings may vary according to the methods used.

Keywords

İstanbul Metropolitan Municipality, Kocaeli Metropolitan Municipality, Financial Performance

Yerel Yönetimlerde Finansal Performans Yönetimi: İstanbul ve Kocaeli Büyükşehir Belediyeleri Örneği

Abstract

Bu çalışmada yerel yönetimlerin finansal performansı büyükşehir belediyesi örneği üzerinden ele alınmıştır. Normalize Edilmiş Maksimum Değerler yöntemi ile kriterler ağırlıklandırılmış; Bulut Endeksi yöntemi, Topsis yöntemi ve Aras yöntemleriyle de alternatifler sıralanmıştır. İlgili yöntemlerin sıralama sonuçları Copeland yöntemiyle bütünleşik hale dönüştürülmüştür. Finansal performans sıralama sonuçları arasındaki ilişkiler Spearman Rho ile analiz edilmiş ve sonuçları değerlendirilmiştir. Çalışmada, Copeland bütünleşik sıralama sonuçlarına göre İstanbul ve Kocaeli Büyükşehir Belediyeleri için en yüksek performans düzeylerinin 2016 ve 2021 yıllarında gerçekleştiği, bununla birlikte en düşük performans düzeylerinin ise 2011 ve 2012 yıllarında gerçekleştiği tespit edilmiştir. Çalışma sonuçları performans sıralamalarının kullanılan yöntemlere göre farklılaşabileceğini ortaya koymaktadır.

Keywords

İstanbul Büyükşehir Belediyesi, Kocaeli Büyükşehir Belediyesi, Finansal Performans, İstanbul Metropolitan Municipality, Kocaeli Metropolitan Municipality, Financial Performance

References

• Al, İ. ve Demirel, K.S. (2022), "Türkiye'nin Makroekonomik Performansının Topsis Yöntemiyle Değerlendirilmesi: 2002-2019 Dönemi", Mehmet Akif Ersoy İktisadi ve İdari Bilimler Fakültesi Dergisi, C.9, No.1: 202-222.
• Bulut, T. (2017), "Organize Sanayi Bölgeleri (OSB’ler) Tüzel Kişiliklerinin Finansal Performans Analizine Yönelik Endeks Önerisi: Bulut Performans Endeksi", Verimlilik Dergisi, No.3: 29-57.
• Bulut, T. (2022a), "Bulut Endeksi [BE] Simülasyonu", (Erişim https://rpubs.com/tevfik1461/bulutendeksi).
• Bulut, T. (2022b), "Normalize Edilmiş Maksimum Değerler [NMD] Metodu", (Erişim https://rpubs.com/tevfik1461/nmd)
• Bursal, M. (2019), “SPSS ile Temel Veri Analizi”, Ankara: Anı yayıncılık.
• Carmeli, A. (2002), "A conceptual and practical framework of measuring performance of local authorities in financial terms: Analysing the case of Israel". Local Government Studies, Vol.28, No.1: 21-36.
• Chaney, B.A., Mead, D. M. ve Schermann, K. R. (2002), “The New Governmental Financial Reporting Model: What it Means for Analysing Government Financial Condition”, The Journal of Government Financial Management, Vol. 51, No, 26:
• Cohen, S. (2018), "Identifying the Moderator Factors of Financial Performance in Greek Municipalities", Financial Accountability & Management, Vol.24, No.3: 265-294.
• Çiçek, Ş.E., Dikmen, S. ve Arslan, P. (2015), "Türkiye’de Belediyelerin Performansının Harcama Yapıları Açısından Analizi", Uluslararası Yönetim İktisat ve İşletme Dergisi , Vol.11, No.24: 59-74.
• Deng, X. ve Chen, C. (2022), "Novel linear programming models based on distance measure of IFSs and modified TOPSIS method for portfolio selection",Egyptian Informatics Journal, 1-19.
• Dinapoli, T. P. (2016), "Local Government Management Guide, Financial Condition Analysis", https://www.osc.state.ny.us/files/local-government/publications/pdf/financial-condition-analysis.pdf, (Erişim 02.09.2022).
• Drew, J ve Dollery, B. (2015), "How High Should They Jump? An Empirical Method for Setting Municipal Financial Ratio Performance Benchmarks", Australian Journal of Public Administration, Vol.75, No.1: 53-64.
• Ersöz, M. (2017), "Kamu Kurumlarında Mali Tablo Analiz Yöntemlerinin Uygulanabilirliği", Sayıştay Dergisi, No.105: 1-40.
• Ertuğ, Z.K. ve Girginer, N. (2022), "Bütünleşik VZA ve GİA Yöntemleriyle Büyükşehir Belediyelerinin Mali Etkinlik Analizi: Türkiye Örneği", Uluslararası İktisadi ve İdari İncelemeler Dergisi, No.15: 411-428.
• Fisher, M., Marsh, T.ve Bunn, E. (2015), "Fiscal health analysis of Texas and its municipalities", Journal of Business & Economics Research, Vol.13, No.2: 115-122.
• Gomes, R.C, Alfinito, S. ve Melo Albuquerque, P.H. (2013), "Analyzing Local Government Financial Performance: Evidence from Brazilian Municipalities 2005 2008", RAC, Rio de Janeiro, Vol.17, No. 6: 704-719.
• Hendrick, R. (2004), "Assessing and measuring the fiscal health of local government: Focus on Chicago suburban municipalities", Urban Affairs Review, Vol.40, No.1: 78-114.
• Hwang, C.L. ve Yoon, K. (1981), Multiple Attribute Decision Making (C. 186), Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-48318-9
• Jones, S. ve Walker, R. (2007), "Explanators of local government distress" Abacus, Vol.43, No.3: 396-418.
• Kablan, A. (2020), “Altman’s Z”-Score to Predict Accounting Based Financial Distress of Municipalities: Bankruptcy Risk Map for Metropolitan Municipalities in Turkey”, Journal of Business Research-Turk, Vol.12, No.1: 498-509.
• Kilic, H.S. (2012), "The Performance Evaluation of Municipalities with VIKOR: an Application among Municipalities in Istanbul", International Journal Of Business and Management Studies, Vol.4, No.1: 43-51.
• Kleynhans, E. ve Coetze, C. (2021), “Assessment of Financial Conditions of South African Municipalities: A Unique Model for KwaZulu-Natal”, Southern African Business Review, Vol. 23, 1-25.
• Kloha, P., Weissert, C. S. ve Kleine, R. (2005), "Developing and testing a composite model to predict local fiscal distress", Public Administration Review, Vol.65, No.3: 313-323.
• Kloot, L. (1999), "Performance Measurement and Accountability in Victorian Local Government", International Journal of Public Sector Management, Vol. 12, No.7: 565-584.
• Lee, M. (2006), "The History of Municipal Public Reporting", International Journal of Public Administration, Vol.29, No.4-6: 453-476.
• Lindermüller, David., Sohn, M. ve Hirsch, B. (2020), "Trading off financial and non-financial performance information to evaluate state-owned enterprise performance- A process tracing-experiment", International Public Management Journal, Vol. 25, No.5: 1-21.
• Lukac, J., Katarína, T., Katarina, C. ve Daniela, H. (2021), “Evaluation of the financial performance of the municipalities in Slovakia in the context of multidimensional statistics”, Journal of Risk and Financial Management, Vol.14, No.12, 1-10.
• McDonald, B.D. (2017). “Measuring the Fiscal Health of Municipalities”, Working Paper No. WP17BM1, Lincoln Institute of Land Policy, Cambridge, MA: Cambridge Press.
• Mead, D. M. (2006), "A Manageable System of Economic Condition Analysis for Government", Public Financial Management, (Ed. Howard A. Frank), Routledge: Boca Raton: 383-419.
• Mubarok, H.M., Nasution, A.A. Kesuma, S.A. ve Pangestu,W. (2022), "Local government financial performance: the effects of capital expenditure and intergovernmental revenue (The case of South Sumatra Province, Indonesia)", Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, Vol.9, No.6: 503-512.
• Myskova, R. ve Hajek, P. (2017), "Comprehensive assessment of firm financial performance using financial ratios and linguistic analysis of annual reports", Journal of International Studies, Vol.10, No.4: 96-108.
• Ngwenya, S. (2010), "Evaluating Financial Conditions of Local Governments in South Africa - A Case of Metropolitan Municipalities in Gauteng", International Research Symposium in Service Management, Le Meridien Hotel, Mauritius, 24-27 August 2010, 1-16.
• Otrusinova, M. ve Kulleova, A. (2019), “Liquidity Values in Municipal Accounting in the Czech Republic”, Journal of Competitiveness, Vol.11, No.1, 84-98.
• Öncü, E. (2021), “Büyükşehir Belediyelerinin Finansal Performanslarının Gri İlişki Analizi Yöntemiyle Karşılaştırılması”, Eskişehir Osmangazi Üniversitesi İİBF Dergisi, C.16, No.2: 575-593.
• Özkul, F. ve Alkan, B. Ş. (2017), "Financial condition analysis in Municipalities: a case of Turkey", Marmara Üniversitesi Öneri Dergisi, C.12, No.48: 153-174.
• Pallis, C., Liapis, K. J. ve Spanos, P.M. (2018), "Measuring Financial Strength in the Public Sector: The Case of Greek Municipalities", Economics World, Vol.6, No.3: 177-184.
• Papcunova, V. (2013), "Evaluation of financial performance of contributory organizations under the jurisdiction of municipalities", Acta regionalia et environmentalica, Vol.10, No.1: 13-18.
• Reisi, A. ve Gavalas, D. (2021), "Financial Performance of Local Government Organizations: The Case Of Municipalities of the South Aegean Region", International Journal of Managerial Studies and Research (IJMSR), Vol.9, No.4: 96-117.
• Ritonga, I.T. (2014), "Developing a Measure of Local Government's Financial Condition", Journal of Indonesian Economy and Business, Vol.29, No. 2: 142-164.
• Saari, D.G. ve Merlin, V.R. (1996), "The Copeland method", Economic Theory, Vol.8, No.1: 51-76.
• Schatteman, A. (2010), "The state of Ontario’s municipal performance reports: A critical analysis.", Canadian Public Administration, Vol.53, No.4: 531-550.
• Sohl,S., Peddle, M.T., Thurmaier, K., Wood, C.H. ve Kuhn, G. (2009), "Measuring the Financial Position of Municipalities: Numbers Do Not Speak for Themselves", Public Budgeting & Finance, Vol.29, No.3: 74-96.
• Stanujkic, D. ve Jovanovic, R. (2012), " Measuring a quality of faculty website using ARAS method", Contemporary Issues In Business, Management And Education, 545-554.
• Top, M. ve Bulut, T. (2022), "Yeni Bir Çok Kriterli Karar Verme Yöntemi: Bulut Endeks-BETA (BE-β), Verimlilik Dergisi, No.3: 393-414.
• Turley, G., Robbins, G. ve McNena, S. (2015), "A Framework to Measure the Financial Performance of Local Governments.", Local Government Studies, Vol. 41, No.3: 401-420.
• Uzunali, E. ve Görmez, A. H. (2019), "Türkiye’de Büyükşehir Belediyelerinin Mali Yapıları ve Bütçe Sürdürülebilirliklerinin Oran Analiz Yöntemiyle Karşılaştırılması",Uluslararası İktisadi ve İdari İncelemeler Dergisi, No.25: 95-118.
• Wang, X., Dennis, L. ve Tu, Y. S. (2007), "Measuring financial condition: A study of US states", Public Budgeting & Finance, Vol. 27: 1-21.
• Whitney, M. (2013), "Fate of the states: the new geography of American prosperity", New York: Portfolio/Penguin.
• Wonda, W. (2016), " Analysis of Financial Performance During Local Government District Autonomy Nabire Papua", Emba, Vol. 4, No. 3: 192-200.
• Zafra-Gomez, J. L., Lopez-Hernandez, A. M. ve Hernandez-Bastida, A. (2009). "Developing a Model to Measure Financial Condition in Local Government.", American Review of Public Administration, Vol. 39, No. 4: 425-449.
• Zavadskas, E.K., Turskis, Z. ve Vilutiene, T. (2010), "Multiple criteria analysis of foundation installment alternatives by applying Additive Ratio Assessment (ARAS) method", Arch. Civ. Mech. Eng., Vol.10, No.3: 123-141.