Relationship between Organizational and Structural Characteristics and Local Authorities Fiscal Health

Abstract

This study explores the fiscal health of local authorities, it: Israel as a function of three factors.: demographic characteristics; residents' socioeconomic status: and perceived organizational reputation. The results showed that each factor was independent to its prediction of the fiscal health of the local authorities examined. When the three factors entered together in the equation, they explained 51.2% of the variance in the fiscal health of the local authorities.

Arab-Druze authorities were found to have inferior fiscal health in relation to Jewish local authorities. A high correlation between residents' socioeconomic status and fiscal health was also found. Finally, it was demonstrated that perceived favorable organizational reputation and fiscal health are highly associated. The results may lead us to a better understanding of why so many Israeli local authorities have been in an inferior financial position compared to others. The findings call for further investigation of the differences between Arab-Druze and Jewish local authorities. The study urges local authority heads to invest their efforts in creating a solid and favorable organizational reputation.