Regional financial performance mediates the effect of regional balance funds and expenditures on economic growth

  • Siktania Maria Dilliana Udayana University, Denpasar, Indonesia
  • Gayatri Gayatri Udayana University, Denpasar, Indonesia
  • Ni Made Dwi Ratnadi Udayana University, Denpasar, Indonesia
  • I Gde Ary Wirajaya Udayana University, Denpasar, Indonesia
Keywords: balance funds, economic growth, effect, financial performance, regional expenditure

Abstract

This study aims to obtain empirical evidence about the balance funds and regional expenditure on economic growth with regional financial performance as a mediating variable. The results showed that the balance fund did not affect the financial performance of the region with a result of 0.054 indicating that the balance fund received by the regional government increased or decreased could not affect the regional financial performance. Regional expenditure has a negative effect on regional financial performance with a result of 0.006 indicating that the allocation of indirect expenditure is higher than the direct expenditure allocation. Balancing funds have a positive effect on economic growth with a result of 0.031 indicating that the amount of general allocation funds, special allocation funds, and profit-sharing funds has increased so that economic growth also increases. Regional expenditure has a positive effect on economic growth with a result of 0.020` indicating that there is infrastructure development undertaken to encourage regional economic growth. Regional financial performance has a positive effect on economic growth with a result of 0.009 indicating that regional capability is getting better based on the results of the ratio of independence, effectiveness, and efficiency.

Downloads

Download data is not yet available.

References

Astuti, W. (2015). Analisis pengaruh kinerja keuangan terhadap pertumbuhan ekonomi dan dampaknya terhadap pengangguran dan kemiskinan (studi pada Kabupaten dan Kota di Pulau Jawa periode 2007-2011). EBBANK, 6(1), 1-18.

Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of management, 16(1), 49-64. https://doi.org/10.1177%2F031289629101600103

Hadi, A., Handajani, L., & Putra, I. N. N. A. (2018). Financial Disclosure based on Web-ICT Determinants: Its Implications for Local Government Financial Performance in Indonesia. International Research Journal of Management, IT and Social Sciences, 5(1), 72-85.

Indarto, S. L., & Ayu, S. D. (2011). Pengaruh Partisipasi dalam Penyusunan Anggaran terhadap Kinerja Manajerial Perusahaan melalui Kecukupan Anggaran, Komitmen Organisasi, Komitmen Tujuan Anggaran, dan Job Relevant Information (JRI). Seri Kajian Ilmiah, 14(1), 1-22.

Kuncoro, M. (2007). Ekonomika industri Indonesia: menuju negara industri baru 2030?. Penerbit Andi.

Kusumawati, L., & Wiksuana, I. G. B. (2018). Pengaruh Pendapatan Daerah terhadap Pertumbuhan Ekonomi di Wilayah Sarbagita Provinsi Bali. E-Jurnal Manajemen Universitas Udayana, 7(5).

Mahaputra, I. P. U. R., & Putra, I. W. (2014). Analisis Faktor-Faktor yang Mempengaruhi Kualitas Informasi Laporan Keuangan Pemerintah Daerah. E-Jurnal Akuntansi, 230-244.

Mustikarini, W. A., & Fitriasari, D. (2012). Pengaruh karakteristik pemerintah daerah dan temuan audit BPK terhadap kinerja pemerintah daerah kabupaten/kota di Indonesia tahun anggaran 2007. Simposium Nasional Akuntansi XV: Banjarmasin.

Nisa, A. A. (2017). Analisis Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum, dan Bagi Hasil Pajak Terhadap Pertumbuhan Ekonomi Kabupaten/Kota di Provinsi Jawa Timur. Jurnal Ilmu EKonomi JIE, 1(2), 203-214.

Nuryani, N. N. J., Satrawan, D. P. R., Gorda, A. A. N. O. S., & Martini, L. K. B. (2018). Influence of human capital, social capital, economic capital towards financial performance & corporate social responsibility. International Journal of Social Sciences and Humanities, 2(2), 65-76. https://doi.org/10.29332/ijssh.v2n2.128

Pratini, P., & Utama, I. W. M. (2016). Pengaruh Kepemimpinan Transformasional dan Budaya Organisasi Terhadap Motivasi dan Kinerja Karyawan. E-Jurnal Manajemen, 5(7).

Putong, I. (2013). Economics pengantar mikro dan makro. Jakarta: Mitra Wacana Media.

Sidik, M. (2002). Optimalisasi pajak daerah dan retribusi daerah dalam rangka meningkatkan kemampuan keuangan daerah. Makalah disampaikan Acara Orasi Ilmiah. Bandung, 10.

Sivagnanam, K. J., & Naganathan, M. (1999). Federal Transfers and the Tax efforts of the States in India (No. 3208). University Library of Munich, Germany.

Suryaningsih, N. N., Utama, M. S., & Yasa, I. M. (2015). Dampak Kinerja Keuangan Daerah Terhadap Kesejahteraan Masyarakat Kabupaten/Kota Di Provinsi Bali. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 4(2015), 537-554.

Widiasih, N. N. & Gayatri (2017). Pengaruh pendapatan asli daerah, dana alokasi umum, dan dana bagi hasil pada belanja modal. E-Jurnal Akuntansi, 2143-2171.

Published
2019-10-31
How to Cite
Dilliana, S. M., Gayatri, G., Ratnadi, N. M. D., & Wirajaya, I. G. A. (2019). Regional financial performance mediates the effect of regional balance funds and expenditures on economic growth. International Research Journal of Management, IT and Social Sciences, 6(6), 164-171. https://doi.org/10.21744/irjmis.v6n6.782
Section
Articles