Presenting a participatory financing model-income based on risk management based on the study of Tehran municipality

Bahrai, Parvin; Mohamadipour, Rahmat Allah; Ahmadi, Fatemeh; Seyed Khani, Reza

doi:10.22075/ijnaa.2023.31151.4585

Presenting a participatory financing model-income based on risk management based on the study of Tehran municipality

Document Type : Research Paper

Authors

Parvin Bahrai

Rahmat Allah Mohamadipour

Fatemeh Ahmadi

Reza Seyed Khani

Department of Accounting, Ilam Branch, Islamic Azad University, Ilam, Iran

10.22075/ijnaa.2023.31151.4585

Abstract

Urban finance is one of the most basic urban development policies. This article investigated Tehran Municipality to provide financial sources of income and provide the cooperative financial model. For this purpose, a mixed method was adopted with the priority of the qualitative stage over the quantitative stage. In the qualitative approach, the proficient subject experts were interviewed to meet the objectives of the research until the theoretical adequacy was achieved. Then, the Delphi method was used to confirm or modify the indicators identified from the qualitative content analysis of the interviews. Thus, the pattern of providing financial resources was extracted from the data of the qualitative phase. After that, the questionnaire was given to 300 financial employees of Tehran Municipality to weigh the indicators identified from the qualitative phase. The data were analyzed using SPSS 22 and Lisrel 8.5 software and the confirmatory factor analysis technique to determine the variables' weight. The findings showed that seven dimensions of justice, transparency, local independence, thrift, income adequacy, sustainability and practicality, and non-shifting of the tax base were extracted in the financing model. The indicators of these dimensions include charges on official documents, charges on added value, charges on buildings and lands, charges on communications and transportation, charges on professional business licenses, charges on parking, charges on centralized collection, charges on property (Real estate), and income from municipal services. Obtaining these results showed that we can achieve a comprehensive theoretical and applied model in this field only when we pay attention to identifying its definitions, concepts, dimensions and components based on the conditions governing the economic environment of the country and Tehran municipality because the financing issue is multifaceted and complex in the municipality.

Keywords

Financing

Tehran Municipality

Model of Providing Sustainable Financing

[1] P. Abad, Beta and systematic risk, Available at SSRN: https://ssrn.com/abstract=3901536, (2021).

[2] K. Abukari and I. Otchere, Dominance of hybrid contratum strategies over momentum and contrarian strategies: half a century of evidence, Financ. Markets Portfolio Manag. 34 (2020), 471–505.

[3] S.R. Akrami, H. Khodabakhshi, M. Jabbari and F. Fazilat, A study of treasury officer’s role in financial regulation; heads of executives entities aspect, Biann. J. Sci. Govern. Account. 1 (2015), no. 2, 9–18.

[4] A.A. Amouzad Mehdiraji and F. Heidarpour, Barriers of performance supervision and controlling role of ministry of economic affairs and finance on reduction of quality of government financial reporting, Int. Conf. Appl. Res. Manag. Account., Shahid Beheshti University, Tehran, Iran, 2016.

[5] M. Bianchi, Financial literacy and portfolio dynamics, J. Finance 73 (2018), 831–859.

[6] J. Chae and R. Kim, Contrarian profits of the firm-specific component on stock returns, Pacific-Basin Finance J. 61 (2020), no. 3, 101–113.

[7] D. Danesh Jafari, J. Babajani, and S. Karimi Asbouei, Evaluating the sustainability of financial and income resources of Tehran municipality, Econ. Urban Manage. J. 2 (2015), no. 7, 15–34.

[8] H. Dehghanzadeh and G. Rezaei, The effects of the new treasury accounting system on the qualitative characteristics of financial information, Biann. J. Sci. Govern. Account. 6 (2019), no. 1, 47–60.

[9] M. Hasanzadeh and I. Shahbazi Koutnaei, Investigation and identification of factors affecting sustainable municipal revenues (Case study: Municipalities of Mazandaran Province), First Special. Cong. Urban Manag. City Councils, 2015.

[10] M. Hashemi and H. Taherkhani, Creating stability in Tehran Municipality’s revenue sources, Proc. 3rd Municipal Finance Conf., Tehran, 2010.

[11] A. Hashim, A Handbook on Financial Management Information Systems for Government: A Practitioners Guide for Setting Reform Priorities, Systems Design and Implementation, Washington, D.C.: World Bank Group, 2014.

[12] E. Jamshidzadeh, The role of renovation taxes in financing municipalities, First Municipal Finance Conf., Tehran, 2003.

[13] T. Panayotou, Effective financing of environmentally sustainable development in Eastern Europe and Central Asia, World Bank Conf. Envir. Sustain. Dev., 1995.

[14] G. Sharezai and M. Qatmiri, Theoretical foundations of costs and methods of cooperative financing of Municipalities: a case study of the structure of financial zones of Shiraz municipality, Proc. Urban Space Manag. Conf., 2017.

[15] G. Sharezai and M. Qatmiri, Studying the methods of financing of Shiraz municipality, Shiraz Municipality Research Project, 2018.

[16] E.I. Siregar and M. Diana, The impact of political risk and macro economics on stock return at Indonesia stock exchange (an approach of arbitrage pricing theory (APT)), KnE Soc. Sci. 3 (2019), no. 26, 744–772.

[17] G. Suresh, Impact of financial literacy and behavioural biases on investment decision-making, FIIB Bus. Rev. 10 (2021), no. 4, 1–15.

[18] V. Trasberg, Land and property taxation in the Baltic States, ERSA 2003 - 43rd Congress of the European Regional Science Association, Jyvaskyla, 2003.

[19] S. Yadegari and M. Ali Madadi, Review of tips on reforming the government’s treasury system, Econ. J. 11 (2011), no. 1-2, 145–154.

[20] K. Ziari, A. Mehdi, and M. Mahdian Behnamiri, Study and identify financial resources and providing solutions to improve the sustainability of the income of Mahabad municipality, Urban Manage. J. 11 (2014), no. 31, 107–124.