The Korea Local Administration Review

The government presented not only the summary of the statement of financial position and the statement of financial operation but also 29 financial ratios of 246 local governments with a closing accounting data based on double-entry and accrual basis of 2007 fiscal year. It is important to correctly assess statistical distributions because many classical statistical tests are based on the assumption that the data follow a normal distribution. Distribution properties of 29 financial ratio of 246 local governments with a closing accounting data of 2007 fiscal year were examined to determine whether normality could be approximated for financial indicators. The results showed that most ratios except a expenditure-budget ratio were not normally distributed. More normality has been achieved after log transformation of the ratios classified by the form of government.