Open AccessPublic Governance and Financial Performance of Indonesian Local Governments: Evidence from Multiple Stakeholder Perspectives
Author(s) -
Mudrifah Mudrifah
Publication year - 2020
Publication title -
international journal of advances in social and economics
Language(s) - English
Resource type - Journals
ISSN - 2685-2691
DOI - 10.33122/ijase.v2i3.162
Subject(s) - accountability , transparency (behavior) , local government , accounting , business , corporate governance , revenue , public sector , stakeholder , proxy (statistics) , public administration , finance , economics , public relations , political science , law , economy , machine learning , computer science
This study aims to examine the effect of public governance implementation, that is explained by 4 variables namely transparency, accountability, legal culture, and public participation on the financial performance of local governments in Indonesia. The private governance research model was adopted in this research to test its effect on performance. A total of 34 regional governments (provincial governments) in Indonesia were used as the object of this research. Moreover, local government transparency is measured by e-governance, local government accountability is measured using audit opinion from the Audit Board of Indonesia, while corruption perception index is used as the indicator of legal culture, public participation represented by the number of latest electoral voters, and local government revenue year 2018 as a proxy for regional financial performance. An analysis of regression is presented by using Eviews version 9 software. The results of the study show that transparency, legal culture and public participation has significant effects on local government revenue. Whereas, accountability does not effect on the financial performance of Indonesian local government.