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Effect of Commitment, Internal Audit, and Financial Management on Local Government Performance in South Sumatra

Author

Listed:
  • I. G. B Surya Negara

    (Doctorate Candidate, Faculty of Economy, University of Sriwijaya, Indonesia,)

  • Didik Susetyo

    (Department Economic Development, Faculty Economic, University of Sriwijaya, Indonesia,)

  • Syamsurijal Abdul Kadir

    (Department Economic Development, Faculty Economic, University of Sriwijaya, Indonesia)

  • Saadah Yuliana

    (Department Economic Development, Faculty Economic, University of Sriwijaya, Indonesia)

Abstract

This study aims to determine the effect of affective commitment, continuance commitment, normative commitment, internal control of income accounting system, internal control of expenditure/cost accounting system, budget planning, budget implementation, reporting and budget accountability, budget performance evaluation on local government performance in South Sumatera. The analysis used primary data and secondary data with analysis technique using multiple linear regression. The result of this research concludes that affective commitment has a significant and positive effect on local government performance and internal control of income accounting system has negative and significant influence to local government performance, while other variables have no effect. The estimation results also show that the regencies of Empat Lawang, Prabumulih and Ogan Komering Ilir are better, while the Ogan Komering Ulu Timur, Lubuk Linggau and Lahat districts are lower. The financial performance of local government which is categorized as very effective is OKI Regency and OKUT, efficient category is OI Regency, OKUS, OKUT, OKI, OKU, Empat Lawang, and very economical is Muratara Regency.

Suggested Citation

  • I. G. B Surya Negara & Didik Susetyo & Syamsurijal Abdul Kadir & Saadah Yuliana, 2018. "Effect of Commitment, Internal Audit, and Financial Management on Local Government Performance in South Sumatra," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 327-334.
    • Handle: RePEc:eco:journ1:2018-04-41
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    References listed on IDEAS

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    More about this item

    Keywords

    Commitment; Internal Control; Financial Management; Performance; Local Government;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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