MSU faculty reveals how governments adjust finances before bonds

Dr. Bruce Grace, retired associate professor of finance, and Dr. Scott Meisel, associate professor of accounting in the Elmer R. Smith College of Business & Technology, have published groundbreaking research in the “Journal of Accounting, Ethics, and Public Policy.”

Their study, "Do City Governments Manage Their Financial Data Prior to Issuing Bonds?” explores whether city governments adjust their financial records to improve their appearance.

Dr. Janet Ratliff, chair of the Department of Business Administration and professor of management and entrepreneurship, emphasized the importance of this work for student learning.

“The research efforts of Dr. Meisel and Dr. Grace are helping to provide students with inquiry into the actual practice of their discipline,” said Ratliff. “Sharing the knowledge gained through research only enhances opportunities for students in the classroom.”

This research builds on their 2019 work, which examined how new rules for reporting finances affect cities. Both studies found that cities sometimes change their financial records to look better, especially before significant financial events like issuing bonds.

For more information on their research, contact Meisel at s.meisel@moreheadstate.edu or 606-783-2795.

To learn more about programs in the Smith College of Business & Technology, email cbt@moreheadstate.edu or 606-783-2174.