The impact of top management education on the socially responsible management of local government in the context of investment development

Abstract

The limited public budgets of local governments, socio-economic crises, and environmental and waste issues create increased demands on their spending. In this context, there is a need to manage the available resources economically and responsibly, which is also an effective communication tool. The scientific study focuses on researching the correlation between the educational attainment of the top management of local government and responsible leadership in the conditions of the Slovak Republic. As a primary indicator, we examine total debt per capita, which we do not primarily perceive as an element of irresponsible management but rather as a tendency of the statutory and parliamentary body to enter into credit relationships because of development activities and investments. We perceive investment activities in the context of educational attainment as a positive communicative tool that creates appropriate conditions for future responsible and sustainable management. The scientific objective of the scientific state is to point out, in terms of theoretical foundations, the role of education and knowledge in the management and achievement of economic and social effects based on the analysis of the relationship between selected indicators of education and total debt as a result of the development of investments. The uniqueness and rareness of the scientific study are the size of the research sample and understated interest in addressing the relationship between education and economic development. We used regression and correlation analysis models to find out these relationships. The results confirmed the predicted relationships but were not universal in considered regions. Based on the results, it was possible to define a barrier to education's positive effects: the local government's size.