The effect of regional original income and balance funding on regional government financial performance

Abstract

<p class="IABSSS"><strong>Purpose</strong> - The purpose of the research was to determine the effect of local revenue and intergovernmental revenue on the financial performance of local government.</p><p class="IABSSS"><strong>Method </strong>- This research used Stewardship Theory. The method used is quantitative research method. The method of data analysis used is multiple linear regression analysis. This research used secondary data. The population in this research is the Regency in Central Java which consists of 29 regencies and 6 cities.</p><p class="IABSSS"><strong>Result</strong> - The results showed that first, local revenue had positive effect on financial performance of local government. Second, intergovernmental revenue had positive effect on financial performance of local government. Third, local revenue and intergovernmental revenue together had influence on financial performance of local government.</p><p class="IABSSS"><strong>Implication</strong> - The practical implication of this research is that the Regency Governments in Central Java are expected to reduce dependence on the central government by optimizing the potential of existing income sources to be able to further improve their financial performance.</p><strong>Originality</strong> - An originality of research is focused on two variables; regional original income and intergovernmental revenue and uses the measurement of independence index for the dependent variable. financing.

The effect of transfer funds to regions and village funds on human development index in districts of west java province in 2015-2018

“…The results of this study support Budi's research (2017), Siswadi (2015) and Awwaliyah, Agriyanto & Farida (2019) which states that the General Allocation Fund negatively and significantly affects the Human Development Index. High General Allocation Fund allocation with a basic allocation component is still the main component that dominates the overall General Allocation Fund received by the district.…”

Factors Affecting the Local Governments Financial Performance

“…In the context of the agency theory, the people act as the principal by providing funding for local retributions, and the local government acts as the agent, who executes responsibility in managing its funds, which originate from the people, to drive other activities in order to achieve the goal of the organization. Andrei 2013, Aswar (2019) and Awwaliyah et al (2019) found that local own-source revenue positively significant on the local governments financial performance. Therefore, the hypothesis formulated: H2: Local Own-Source Revenue positively significant on the Local Governments Financial Performance.…”

“…The central government acts as the principal in relation to the agency theory, and local g and the local government acts as the agent, in which the central government delegates authority to the local government in managing the finances from received funds, and the local government must assume responsibility on behalf of that authority by managing finances well, an also optimally and fairly increase the quality of public services. This will improve the local government's financial efficiency, based on studies conducted by Andirfa et al (2016) and Awwaliyah et al (2019), which show that fiscal balance transfer has a positive effect on the financial performance of local governments. The hypothesis is formulated on the basis of the explanation above: H1: Fiscal Balance Transfer positively significant on the Local Governments Financial Performance.…”

The Effect of Good Corporate Governance, Free Cash Flow, and Tax Planning on Earnings Management

“…Tax planning organizes individual taxpayers and enterprise entities by utilizing various possibilities of loopholes taken by companies in the corridor of tax regulations so that taxpayers can pay a minimum amount (Pohan, 2013). This study's measurement of tax planning is calculated through tax retention rate, which analyzes the effectiveness of tax management in financial reporting for the current year (Awwaliyah et al, 2019). The calculation of the effectiveness of tax management itself is the calculation of the effectiveness of tax planning (Aditama & Purwaningsih, 2014).…”