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The Impact of The Quality of Financial Statements on Local Revenue Using Examination Opinion Results asModerating Variable

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  • Arik Susbiyani

    (Accounting Department, Muhammadiyah University of Jember, Indonesia)

Abstract

This study aimed to examine the influence of the financial statements on local revenue by using the results of the examination opinion as moderating variable. The study usedLegitimacy Theoryto explain and analyze the relationship between variables. The population in the study was all the districts and cities in Indonesia totaling 497 county and city governments. The sampling method used in the study was judgment sampling. Samples that met the criteria of the study were 116 local governments. The analytical tool used in this research was the analysis of MRA (Moderated Regression Analysis). The results showed that the effectsof the partial test of the quality of financial reports to local revenues were not significant positive effects. While the partial test results stating the influence of audit opinion on local revenue havingpositive effects were not significant. Other results showed that the interaction between the results of the examination opinion to the quality of financial statements was insignificanton the quality of financial statements. In other words, the results of the examination opinions moderated (strengthened) therelationship between quality of financial report on local revenue of district and city governments in Indonesia.

Suggested Citation

  • Arik Susbiyani, 2017. "The Impact of The Quality of Financial Statements on Local Revenue Using Examination Opinion Results asModerating Variable," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(1), pages 122-133, January.
    • Handle: RePEc:rbs:ijfbss:v:6:y:2017:i:1:p:122-133
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    References listed on IDEAS

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    2. Lang, M & Lundholm, R, 1993. "Cross-Sectional Determinants Of Analyst Ratings Of Corporate Disclosures," Journal of Accounting Research, Wiley Blackwell, vol. 31(2), pages 246-271.
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