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| Author(s): |
Carlos Alberto Grespan Bonacim
Total Authors: 1
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| Document type: | Doctoral Thesis |
| Press: | São Paulo. |
| Institution: | Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD) |
| Defense date: | 2009-09-23 |
| Examining board members: |
Valmor Slomski;
Jeronymo José Libonati;
Gilberto de Andrade Martins;
Paulo Arnaldo Olak;
Ursula Dias Peres
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| Advisor: | Valmor Slomski |
| Abstract | |
The growing participation of society in the discussion and decision making processes related to public policies has stimulated public managers in Brazil to seek mechanisms to show efficiency and transparency in the use of income. Within the public sector, the social expenditure destined to cash transfers stands out in terms of allocation of income; thus, it bears strong need for planning, evaluation and accountability. In this context, this work used the conceptual model of the Residual Theory of Dividends established by Modigliani and Miller (1958), and revisited by Jensen (1986) in the Free Cash Flow Theory, and aimed at disclosing the Free Cash Flow to Citizen (FCFC) generated and distributed by a public entity, in accordance with the rules of the economic result. In order to do so, a critical bibliographic review was carried out, and it revealed the similarity and adherence in the conceptual discussions and in the applied studies concerning relationship/trade off between distribution of cash surplus and capacity to re-invest in both the public and the private sectors. Moreover, it was possible to observe that the Residual Theory of Dividends and its discussion of Free Cash Flow to Shareholder may be considered applicable to a change in focus (from shareholder to citizen) and keep its initial presuppositions. This way, having the bibliographic review as the origin, it is possible to propose the theoretical construct Free Cash Flow to Citizen (FCFC). The theoretical framework explained that the disclosure of FCFC may demonstrate how public entities have generated cash surplus to citizens: with service rendering or by cash transfer programs compensation transfers. Additionally, a case study was carried at USP Ribeirão, whose core aim was not only to illustrate a possible use of the construct, but also to unveil in what way managers of public entities may improve the accountability process using FCFC, considering the managers viewpoint. This research may be used in empirical studies aiming at understanding and describing the present stage of evolution of the processes of economic evaluation and accountability of public investments, as well as to validate the FCFC construct. It is our belief that this work may have contributed to indicate possibilities within the process of accountability in the public sector, so that citizens may distinguish benefits received directly, by means of cash transfer programs, from the ones received through the rendering of services, such as education and health. (AU) | |