Accrual-based IPSAS and effectiveness of government debt management policy: evidence from developing economies

Purpose This paper examines the impact of using accrual-based IPSAS on the government’s debt management policy effectiveness in the context of developing economies. Design/methodology/approach This research applies panel regressions and uses the generalized method of moment (GMM) for a sample of 50 developing economies (DEs) during the period 2014–2023. Findings The study results reveal that the use of accrual-based IPSAS promotes the effectiveness of public debt management policy in DEs. In addition, the robustness and additional analysis findings show a positive impact of these standards’ implementation on government debt sustainability. Practical implications This study might have implications for government policymakers, researchers, practitioners, international financial institutions and standard-setters. By investigating this topic, this research leaves room for further investigation of the effect of IPSAS implementation on public sector management, whether in the context of DEs or developed countries. Originality/value This paper provides new insights into the influencing factors of public debt management policy and also sheds light on other beneficial aspects of IPSAS adoption, specifically in DEs. This research is one of the first to investigate the effect of using IPSAS on government debt management policy, with a greater focus on public debt sustainability.