10.2190/T2DQ-3QQ6-2XL3-L0QE T2DQ3QQ62XL3L0QE 0 THE SERENDIPITOUS EFFECT OF ACCOUNTING DATA DISCLOSURE ON MUNICIPAL COLLECTIVE BARGAINING 20020509 20020509 20020509 20020509 http://baywood.metapress.com/link.asp?target=contribution&id=T2DQ3QQ62XL3L0QE 3 GARY B. FRANK AND HARRY E. GRAHAM Substantial changes in municipal accounting practice and data disclosure are expected to occur in the very near future. Proposed reform measures have stemmed largely from a growing concern over the financial health of municipal governments. The specific requirements to be made of municipalities will be designed primarily to protect investors in municipal securities and to assure greater accountability of public officials. Little consideration has been given to the impact of disclosure on public collective bargaining since public unions have not been viewed as a major class of users of municipal reports. However, since employee benefits are the single largest component of municipal expenditures, and since municipal employees are increasingly being represented by organized labor, it is desirable to analyze the impact on bargaining activity of data disclosure. It is the major contention of this paper that greater disclosure of public accounting data may substantially improve the process and outcomes of public bargaining as greater availability of information leads to more rational decision making in the allocation of public benefits.