Abstract:
Australian public sector reforms have emphasised the accountability of agencies for the performance of management. Despite considerable diversity in public sector organisations, annual reports have been promoted as an appropriate tool to discharge the accountability of all government agencies. However, there remains an absence of consistent empirical evidence as to the value of the annual report for reporting on management performance. Further, debates about the role of public sector annual reports often become intertwined with notions of the quality of reports. Prior research has investigated the incentives of agencies to enter annual reporting awards as a means of signalling the quality of management. However, the research ignores the possibility that the value of annual reports to discharge performance accountability and the value of entry into an annual reporting award may vary depending on the type of public sector agency and on the relationships between stakeholders. This study focuses on the Queensland public sector and the Queensland Annual Reporting Award (QARA) and uses a series of case studies to examine the value of the annual report as a means of discharging accountabilities. The results reveal a cross sectional variation in the perceived value of the annual report in discharging accountabilities. In some cases it was thought that alternative forms of communication provided a more suitable means to discharge the accountability demands of stakeholders. Further, while annual reporting awards provide a mechanism to supply a credible signal of quality, it will only be used in those situations where the participants identify direct benefits of entry.
