Research Paper
Year: 2022 | Month: November | Volume: 9 | Issue: 11 | Pages: 283-293
DOI: https://doi.org/10.52403/ijrr.20221138
Effects of Regional Financial Independence, Total Assets, Intergovernmental Revenue and Inspection Findings on Financial Performance with Capital Expenditure as Moderating Variable in Provincial Government of North Sumatera
Windy Syafira Lubis1, Erlina2, Sirojuzilam Hasyim3
1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia
Corresponding Author: Windy Syafira Lubis
ABSTRACT
This study aims to determine and analyze how the effect of regional financial independence, total assets, intergovernmental revenue, and audit findings on the financial performance of local governments in North Sumatra Province. In addition, this study also aims to determine whether capital expenditure can be used as a moderating variable in the research model.
This type of research is causal associative research that uses a quantitative approach. The population in this study were all district/city governments in the Province of North Sumatra, consisting of 25 regencies and eight cities. The number of observation samples in this study was 165 data. Meanwhile, the data analysis technique used in this research is panel data regression and moderating test carried out with the help of Eviews software.
The results of this study indicate that regional financial independence and intergovernmental revenue have a positive and significant effect on the financial performance of local governments. Meanwhile, the audit findings have a negative and significant impact on the financial performance of local governments. Other results in this study indicate that capital expenditure can moderate the effect of regional financial independence and total assets on the financial performance of local governments in North Sumatra Province.
Keywords: Regional Financial Independence, Total Assets, Intergovernmental Revenue, Audit Findings, Local Government Financial Performance, Capital Expenditure.
[PDF Full Text]