Open AccessThe Effect of Fiscal Decentralization on the Accountability of City / District Government Financial Reporting in Indonesia and the Regional Government's Financial Performance as a Moderation Variable
Author(s) -
Wahida Nurmuthmainnah,
. Syarifuddin,
Mediaty MEDIATY
Publication year - 2020
Publication title -
international journal of innovative science and research technology
Language(s) - English
Resource type - Journals
ISSN - 2456-2165
DOI - 10.38124/ijisrt20jul271
Subject(s) - accountability , decentralization , local government , moderation , financial independence , panel data , independence (probability theory) , central government , business , nonprobability sampling , government (linguistics) , finance , sample (material) , economics , accounting , political science , public administration , population , philosophy , mathematics , law , linguistics , chemistry , sociology , psychology , social psychology , chromatography , market economy , econometrics , statistics , demography
This study aims to provide an overview of the effects of fiscal decentralization in proxies with regional independence and regional dependence on the central government regarding accountability of regional financial reporting and financial performance of Local Governments as moderating variables. The type of data used in this study is secondary data, panel data in the form of time series data from 2015 to 2017 and cross section data from 509 districts / cities in Indonesia. The sample selection in this study was purposive sampling by creating a cluster of western, central and eastern regions, so that 135 samples were obtained. The results showed that: (1) Regional independence had a positive effect on the accountability of local government financial reports. (2) Regional Dependence has a negative effect on the Accountability of Regional Government Financial Statements. (3) The financial performance of regional governments can moderate the influence of regional independence on the accountability of local government financial reports. (4) The financial performance of regional governments can moderate the effect of regional dependence on the accountability of local government financial statements.