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Transparency of Financial Reports of Local Government Hospitals in Indonesia

Author

Listed:
  • Margaretha Anggreni Loi

    (State University of Malang, Malang, Indonesia)

  • Sri Pujiningsih

    (State University of Malang, Malang, Indonesia)

  • Endang Sri Andayani

    (State University of Malang, Malang, Indonesia)

Abstract

Due to factors such as conflict of interest, high levels of corruption, high political competition, and lack of open access to financial reports, the transparency of local government hospitals' financial reports remains low. This study aims to analyze the factors that influence the transparency of financial reports of local government hospitals in Indonesia. The study's population is the Local Public Service Agency (BLUD) Hospitals in Indonesia, registered on the Ministry of Health's Hospital Information System's official website for 2019-2021. The data used for analyses is secondary data obtained from the official website of each local government hospital. The study's dependent variable is the transparency of financial statements of local government hospitals in Indonesia as measured by the disclosure of financial statements to the public through their respective websites. Transparency is assessed based on Government Regulation No. 71 of 2010 concerning Government Accounting Standards, which requires local governments to present seven financial reports. The independent variables in this study are the quality of financial statements, hospital size, hospital type, gender of hospital head, and gender of the supervisory board. This study uses the logistic regression analysis method. The results of this study indicate that the quality of financial statements and hospital size significantly improve the transparency of financial reports of local government hospitals in Indonesia. At the same time, factors such as the type of hospital and the gender of the supervisory board did not show a significant effect. In addition, the gender of the hospital head has a significant negative effect on the transparency of financial reports of local government hospitals in Indonesia. Local governments can use this study's findings to improve supervision and help local government hospitals comply with regulations related to financial statement disclosure.

Suggested Citation

  • Margaretha Anggreni Loi & Sri Pujiningsih & Endang Sri Andayani, 2024. "Transparency of Financial Reports of Local Government Hospitals in Indonesia," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 150-158, December.
    • Handle: RePEc:iaf:journl:y:2024:i:4:p:150-158
    DOI: 10.33146/2307-9878-2024-4(106)-150-158
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    References listed on IDEAS

    as
    1. Patience Aseweh Abor & Carlos Kokuvi Tetteh, 2023. "Accountability and transparency: Is this possible in hospital governance?," Cogent Business & Management, Taylor & Francis Journals, vol. 10(3), pages 2266188-226, December.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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