Title:
DETERMINANTS OF LOCAL GOVERNMENT FINANCIAL PERFORMANCE IN CENTRAL JAVA 2019-2020

Authors:
Rizka Fajriana Fitri Prasetya and Djuminah

Abstract:
Local governments are required to be able to produce good financial performance so that the public is able to assess the performance of the government. This study aims to analyze the effect of the level of regional wealth, regional expenditure, and intergovernmental revenue on regional financial performance. This research data uses secondary data, namely the financial reports of local/municipal governments in Central Java for 2019-2020 which have been published at www.djpk.kemenkeu.go.id. The sampling method was carried out using the purposive sampling technique. The sample in this study is 35 districts/cities in 2019-2020. The analytical model used is multiple linear regression analysis. The results of this study indicate that regional spending is a factor that affects the financial performance of local governments, while the level of regional wealth and intergovernmental revenue does not affect the financial performance of local governments.

Keywords:
Regional Expenditure; Regional Wealth Level; Intergovernmental Revenue; Regional Government Financial Performance

DOI:
http://dx.doi.org/10.37500/IJESSR.2022.5414