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Financial Performance of Local Governments in Indonesia

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  • Khoirul Aswar

Abstract

This study aims to identify the effects of local revenue, audit opinion, legislative size, and intergovernmental revenue towards the financial performance of Local Governments in Indonesia. This study uses all districts/cities within the island of Java as a sample. The sample identification uses the purposive sampling method. Secondary data used in this study originates from the report of examination of the local government financial report and the summary of examination published per semester by the national audit board of the Republic of Indonesia. A total of 108 samples were retrieved, resulting in a total of 120 samples. The hypothesis testing was done using the multiple linear regression analysis method. The results of this research show that local revenue, national audit board opinion, and legislative size has a significant relationship on the financial performance of local governments in Indonesia. However, Intergovernmental Revenue does not have a relationship on the financial performance of Local Governments in Indonesia.

Suggested Citation

  • Khoirul Aswar, 2019. "Financial Performance of Local Governments in Indonesia," European Journal of Business and Management Research, European Open Science, vol. 4(6), November.
    • Handle: RePEc:epw:ejbmr0:v:4:y:2019:i:6:id:50164
    DOI: 10.24018/ejbmr.2019.4.6.164
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    References listed on IDEAS

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    1. Gilligan, Thomas W. & Matsusaka, John G., 2001. "Fiscal Policy, Legislature Size, and Political Parties: Evidence From State and Local Governments in the First Half of the 20th Century," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(1), pages 57-82, March.
    2. Gilligan, Thomas W. & Matsusaka, John G., 2001. "Fiscal Policy, Legislature Size, and Political Parties: Evidence from State and Local Governments in the First Half of the 20th Century," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 57-82, March.
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    Cited by:

    1. Dina Syahrina & Ermawati ., 2020. "Flypaper Effect Analysis on Local Government Budgets in Indonesia," European Journal of Business and Management Research, European Open Science, vol. 5(4), July.
    2. Hapsari Nur Aziza & Mahendro Sumardjo, 2020. "Analysis of Local Expenditure Determinants in Districts/ Cities in the East Java Province," European Journal of Business and Management Research, European Open Science, vol. 5(4), July.
    3. Muhammad Haekal & Prap tiningsih, 2020. "Performance Evaluation of Water Supply Company (PDAM) in Depok," European Journal of Business and Management Research, European Open Science, vol. 5(2), March.

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