摘要
An important research field in public and private sectors,accounting is the identification of the factors of financial strength that affect the control and decision-making process.The paper examines the financial strength of the municipalities in Greece and their possible bankruptcy.In literature,important examples of forecasting and estimating financial strength for public sector have been presented,such as the Brown’s 10-point test which measures the financial condition in the case of municipalities.The present survey focuses on the liquidity of the Greek municipalities using data for the financial year 2014 from all over the Greek territory.By implementing Brown’s 10-point test for Greek municipalities and using quantitative methods,each point is becoming a separate independent variable which affects,with different estimator,the total score of financial condition.The model that has been developed appears to be effective in the case of Greek municipalities by providing a rating for their financial strength.The use of the proposed methodology can be used by both funding institutions(banks,grant providers,relevant ministry)on a programmatic basis to address liquidity problems.
