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The Effect of Quality Financial Reporting on Good Governance

Author

Listed:
  • Otniel Safkaur

    (Department of Accounting, Universitas Cendrawasih, Indonesia)

  • Nunuy Nur Afiah

    (Department of Accounting, Universitas Padjadjaran Bandung, Indonesia.)

  • Sugiono Poulus

    (Department of Accounting, Universitas Padjadjaran Bandung, Indonesia.)

  • Muhammad Dahlan

    (Department of Accounting, Universitas Padjadjaran Bandung, Indonesia.)

Abstract

One of the factors triggering a lack of financial reporting caused by dishonest application of records, it has not been effectively transparent and accountable by various government agencies in Indonesia. This study aims to find out how the application of the accrual basis in accounting records in the government and its effect on good governance. This study uses a method of verifying causality to determine the influence between variables. The population in this study were 44 regency and city governments in the provinces of Papua and West Papua. Whereas the Observation Unit is DPPKAD in 44 Provinces/Cities/Districts in the regions of Papua and West Papua. The sampling technique uses a census so that all members of the population become the study sample. The results of this study show empirical evidence that the application of the accrual basis of financial reporting affects good governance resulting from financial reporting of 44 district and city governments in the provinces of Papua and West Papua.

Suggested Citation

  • Otniel Safkaur & Nunuy Nur Afiah & Sugiono Poulus & Muhammad Dahlan, 2019. "The Effect of Quality Financial Reporting on Good Governance," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 277-286.
    • Handle: RePEc:eco:journ1:2019-03-29
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    References listed on IDEAS

    as
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    4. FILIPPOS STAMATIADIS, Mr, 2009. "Investigating the Governmental Accounting Reform of Greek National Health System (ESY): Some preliminary Evidence," MPRA Paper 19649, University Library of Munich, Germany, revised 03 Sep 2009.
    5. van der Hoek, M. Peter, 2005. "Accrual-Based Budgeting and Accounting in the Public Sector: The Dutch Experience," MPRA Paper 5906, University Library of Munich, Germany.
    6. J. Christiaens & V. Van Peteghem, 2004. "Governmental Accounting Reform: Evolution Of The Implementation In Flemish Municipalities," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/256, Ghent University, Faculty of Economics and Business Administration.
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    Cited by:

    1. Khowanas Saeed Qader & Kemal Cek, 2023. "Analysis of the Impact of External Auditors’ Autonomy on Financial Accounting Information Quality Case Study Commercial Banks in Northern Iraq," Sustainability, MDPI, vol. 15(12), pages 1-21, June.

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    More about this item

    Keywords

    Financial reporting; Organizational structure; Good governance;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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