An Empirical Analysis of Local Government’s Financial Performance: A Case Study of West Java Province

Authors

  • Sindi Megia, Sylvia Fadilla, Lita Pebriani, Ichza Suryati, Hesty Juni Tambuati Subing, S.E., M.Ak.

Abstract

The purpose of this study was to determine the effect of Local Original Revenue, General Allocation Funds, and Special Allocation Funds on Financial Performance. This study uses secondary data, such as reports on the realization of regional revenues and reports on the realization of regional expenditures listed in the Central Bureau of Statistics with a sample of 115 for the period 2015 to 2019. Data analysis used in this study is panel data regression analysis and uses the Eviews 9 application. Regression analysis is used to determine the effect of Local Original Revenue, General Allocation Funds, and Special Allocation Funds on Financial Performance. The results show that the variables LOR, GAF and SAF have a simultaneous effect on Government Financial Performance. Partially, the variable of Local Original Revenue has an effect on Government Financial Performance while the General Allocation Fund and the Special Allocation Fund have no effect on the Government Financial Performance. This can be a reference for local governments to increase Local Original Revenue in improving regional financial performance.

Published

2020-11-01

Issue

Section

Articles