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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Factors that Affect the Local Government Financial Performance (Study on District/City Governments in Jambi Province)

Rico Wijaya, Agus Solikhi

http://dx.doi.org/10.6007/IJARAFMS/v12-i2/13357

Open access

The purpose of this study is to examine and analyze the effect of the level of regional wealth on local government financial performance, to examine and to analyze the effect of capital expenditure on government financial performance, to examine and to analyze the effect of intergovernmental revenue on local government financial performance, to examine and to analyze the effect of BPK audit findings on local government financial performance. Then also to examine government size moderating the relationship between the level of regional wealth, capital expenditures, intergovernmental revenue and BPK audit findings on government financial performance. This research was conducted in eleven (11) districts / cities throughout Jambi Province. The research method used is quantitative research and the analytical tool used in this study is to use the Smart PLS version 5.0 application. The results of this study are that level of regional wealth has a significant positive effect on government financial performance, capital expenditure has a significant positive effect on local government financial performance, Intergovernmental revenue has no significant positive effect on local government financial performance, BPK audit findings have no significant positive effect on local government financial performance and Government size is only able to moderate the relationship between the level of regional wealth and local government financial performance.