The Influence of Regional Original Income, Government Size, and Capital Expenditure on the Financial Performance of Provincial Governments in Indonesia
DOI:
https://doi.org/10.31851/jmwe.v23i2.21974Keywords:
Regional Original Income, Government Size, Capital Expenditure, Regional Government Financial Performance.Abstract
This study was conducted with the aim of examining the influence of Locally-Owned Revenue, Government Size, and Capital Expenditure on the Financial Performance of Provincial Governments in Indonesia for the period 2020–2024. The population used in this study was the Regional Government Financial Reports (LKPD) of all 38 provinces in Indonesia. The sample obtained was 34 provinces out of 38 existing provinces, selected using a purposive sampling technique, resulting in 170 observational data. The collected data were analyzed using descriptive statistical analysis methods, panel data regression analysis, classical assumption tests, and hypothesis tests. Data analysis used the EViews 13 application. The results of this study indicate that Locally-Owned Revenue and Government Size partially have a positive and significant effect on Local Government Financial Performance, while Capital Expenditure partially has a positive but insignificant effect on Local Government Financial Performance. Locally-Owned Revenue, Government Size, and Capital Expenditure simultaneously have a positive and significant effect on Local Government Financial Performance.
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