Financial Performance of Regional Government Revenue Growth in Central Java Province Indonesia
Asrori, Juliatun Nur Hasanah and Muhammad Ihlasul Amal
Universitas Negeri Semarang
Abstract
The most important financial performance of the regional government can be measured by the ratio of annual revenue growth. This study aims to examine the effect of autonomy and operating performance on the financial performance of regional government revenue growth with budget effectiveness as an intervening variable. The unit of analysis of this study includes the financial statements of 29 regency governments and 6 cities in Central Java Province, Indonesia for three periods from 2015 to 2017. The results of this study indicate that autonomy and operating performance have a positive effect on financial performance of district government revenue growth /city. This study provides empirical support for the implementation of the new public management theory to improve the financial performance of district / city governments, especially in growing regional income. However, the results show that the effectiveness of the budget is not able to mediate an increase in the influence of autonomy and operating performance on the financial performance of the growth of district / city government revenues. It is recommended that the effectiveness of the district / city government budget be improved.
Keywords: autonomy, operating performance, budget effectiveness and regional revenue growth.
Topic: Accounting