지방자치단체의 ESG 개선을 위한 노력이 지방자치단체 회계 투명성에 미치는 영향

Despite the increasing importance of Environmental, Social, and Governance (ESG) activities in local governments, there appears to be a limited understanding of ESG among local governments. This study hypothesizes that local governments with robust ESG initiatives will also exhibit higher transparency in their financial accounting, assuming that these efforts reflect a prioritization of residents' welfare. Specifically, the study examines whether ESG management efforts impact accounting transparency, analyzing data from 226 basic local governments over a five-year period from 2016 to 2020. The results indicate that greater efforts in ESG are associated with improved accounting transparency. The data analysis reveals a statistically significant positive relationship between ESG indicators and allowance for bad debts on uncollected non-tax revenue. Moreover, the composite ESG index, standardized and aggregated from environmental, social, and governance measures, shows a significant positive effect on both allowance for bad debts on uncollected non-tax revenue and the ratio of allowance for bad debts on uncollected non-tax revenue. This empirical evidence suggests that local governments with higher ESG efforts tend to have superior accounting transparency. In other words, local governments that operate with a focus on sustainability also demonstrate more transparent accounting practices. This study offers the implication of emphasizing the need for sustainability efforts, specifically ESG management, to enhance the transparency of local governments. Additionally, this study suggests employing quantifiable indicators that have not been frequently used in previous public administration research on ESG.