Linking Budget Transparency to Performance through Absorption Efficiency

DOI

10.2991/978-94-6239-709-5_64How to use a DOI?

Keywords

Budget Transparency; Budget Absorption Efficiency; Regional Financial Performance; PLS SEM; Public Financial Management

Abstract

This study examines how budget transparency translates into better regional financial performance through the mediating role of budget absorption efficiency in Buton, Southeast Sulawesi. A cross-sectional survey of officials responsible for planning, procurement, treasury, and budget execution produced 220 valid responses. Data were analysed using PLS SEM. The measurement model satisfied accepted criteria for reliability, convergent validity, and discriminant validity, and diagnostics indicated that collinearity and common-method concerns were unlikely to bias the results. The structural model supports the theorised mechanism: greater transparency is associated with stronger absorption discipline, and this discipline is positively related to financial performance; a smaller yet meaningful direct association between transparency and performance remains after accounting for the mediator. The findings suggest that transparency delivers value when it is operationalised as routine, predictable disclosure that anchors managerial behaviour during the fiscal year. Practically, early procurement readiness, disciplined cash planning, and prompt communication of budget revisions emerge as actionable levers for converting formal openness into tangible improvements in economy, efficiency, effectiveness, and compliance within an archipelagic district context.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Arly Setyawan
AU  - Syamsu Alam
AU  - Syarifuddin Syarifuddin
AU  - Sri Undai Nurbayani
PY  - 2026
DA  - 2026/06/20
TI  - Linking Budget Transparency to Performance through Absorption Efficiency
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 939
EP  - 955
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_64
DO  - 10.2991/978-94-6239-709-5_64
ID  - Setyawan2026
ER  -