Purpose: Studies on how accounting is involved in financial crises and austerity are limited. The context of austerity provides an interesting opportunity to explore the role of accounting in shaping governmental financial resilience, i.e. the capacity of governments to cope with shocks...

Through a multiple case study of eight Italian municipalities, our paper identifies the main shocks perceived by the local management as a consequence of the recent fiscal crisis and the related organizational responses. The analysis roots current responses in longer-term municipal financial...